Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of hardwood-flooring specialist Lumber Liquidators
So what: For the quarter, Lumber Liquidators reported a 17.7% increase in sales to $188 million, and a profit of $0.29, which handily surpassed the profit of $0.25 on sales of $176.1 million that analysts had been looking for. Lumber Liquidators cited cheaper transportation costs and lower product costs as the driving force behind the growth in sales.
In addition, the company also boosted its full-year sales and EPS forecast from its previous quarterly guidance. Lumber Liquidators now expects full-year sales of $720 million-$750 million, and EPS of $1.10-$1.25. Both figures fall in line with the current consensus expectations.
Now what: Although the company is still cautious about its outlook (as is evidenced by its guidance that comparable store sales could be anywhere from negative to low-single-digits positive), today's results demonstrate to me that home remodels are still running strong. Like Home Depot
Craving more input? Start by adding Lumber Liquidators to your free and personalized watchlist so you can keep up on the latest news with the company.