Shares of Lumber Liquidators Holdings Inc. LL, +1.94% rallied 4.2% in premarket trading Tuesday, reversing earlier losses, after the hardwood-flooring retailer reported fourth-quarter profit and sales that beat expectations, while not providing financial guidance given uncertainties resulting from the COVID-19 pandemic. Net income rose to $31.1 million, or $1.07 a share, from $16.4 million, or 57 cents a share, in the year-ago period, helped by a $12.6 million income tax benefit. Excluding nonrecurring items, adjusted earnings per share came to $1.06, above the FactSet consensus of 49 cents. Total sales increased 11.1% to $304.2 million, beating the FactSet consensus of $296.5 million, as same-store sales grew 10.5% to beat expectations of an 8.7% rise, as “healthy” consumer demand for home improvement projects provided a boost. Gross margin decreased to 38.8% from 40.9% a year ago. “So far in 2021, our industry continues to benefit from consumer investment in home improvement,” said Chief Executive Charles Tyson. “That said, there remains a good deal of uncertainty due to COVID-19, potential changes in consumer spending priorities and supply chain volatility.” The stock has declined 10.2% over the past three months through Monday, while the S&P 500 SPX, +2.38% has gained 6.4%.
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