Lumber Liquidators reported profits of $1 million in the third quarter of 2019, an 83% decline compared with its net income of $5.9 million in the third quarter of 2018.
The company’s net sales fell 2.4% to $264 million during the quarter compared with the same period in 2018, and its diluted earnings per share fell from $0.21 to $0.04.
“We had a challenging quarter that included soft demand in July as well as a network security incident in August,” CEO Dennis Knowles stated, “but despite these headwinds, we made solid progress during the quarter implementing strategic initiatives, including actions to mitigate the impact of tariffs.”
In August, Lumber Liquidators’ network security incident caused by malware impacted its ability to electronically process transactions. The company estimates the incident cost between $6-8 million.
During the quarter, the company also entered into a definitive settlement agreement to pay $30 million in a class-action lawsuit over its Morning Star Strand Bamboo flooring.
The full Q3 report can be found here.