LL Flooring reported a net income loss of $10.58 million in the first quarter of 2023. The flooring retail company earned $4.03 million during the same period last year.
LL Flooring’s net sales fell 13.7% to $240.7 million.
“As expected, the first quarter was very challenging, and our performance reflected the impact the difficult macro backdrop had on discretionary home improvement spending,” President and CEO Charles Tyson said in a statement. “In addition, we continue to experience pressure from brand awareness and operational challenges that impacted first quarter results.”
The company has also been impacted by the enforcement of the Uyghur Forced Labor Prevention Act as it relates to imports of polyvinyl chloride, according to Tyson. The act, signed into law in 2021, requires “clear and convincing evidence” that goods imported to the U.S. were not produced using forced labor. The law is “resulting in delays in receipt of certain vinyl flooring products,” Tyson added. “We are diligently working to provide the additional documentation that has been requested by U.S. Customs.”
LL Flooring’s full financial report can be found here.
