Lumber Liquidators had a net loss of $4.9 million in the first quarter of 2019, compared with a loss of $2 million during the same period in 2018.
Net sales for the quarter increased by 1.7% to $266 million. The company reported a 35.2% decrease in gross margins during the quarter and cited the impact of higher tariff costs on its Chinese products.
During the quarter, Lumber Liquidators agreed to a $33 million settlement with state and federal governments after being charged with misleading investors about its Chinese-made laminate flooring’s formaldehyde levels in 2015. The company had also settled a $36 million class-action lawsuit in late 2018 related to the Chinese-made laminate flooring.
"With key legacy product legal issues behind us, we have moved quickly to execute our transformation strategy and accelerate growth initiatives,” Lumber Liquidators CEO Dennis Knowles said in a statement.
The company moved to expand its installation services during the quarter and has been experimenting with larger store locations.
“As we look ahead, we are confident we have the right balanced approach to drive profitable growth,” Knowles added.
At press time, the company’s stock grew 1.07% following the earnings report to $13.22.
