Shares of Lumber Liquidators fell nearly 20 percent Thursday, a day after the hardwood floor retailer cut its earnings outlook for the year and said fewer people are coming into its stores than expected.
The company said harsh winter weather in the first part of the year kept shoppers from its stores. Lumber Liquidators also said fewer people are buying homes this year than in 2013, and others are holding off on changing their wooden floors. It also said some mills had production delays and couldn't make some orders. But the company said those problems should be resolved in the third quarter.
Lumber Liquidators could be hurting from increased competition from Home Depot, which also sells flooring, Wedbush analyst Seth Basham said in a note to clients. Lumber Liquidators said in an emailed statement that it offers "a unique value proposition with the best price, selection, quality, availability and service" and is confident that it will continue to grab market share.
The Toano, Virginia-based company said it now expects earnings between $2.65 per share and $3 per share for the year, down from its previous forecast of between $3.25 per share and $3.60 per share. That's far below the $3.33 per share Wall Street analysts expected, according to FactSet.
It now forecasts revenue between $1.05 billion and $1.10 billion, down from its previous range between $1.15 billion and $1.20 billion. Analysts expected revenue of $1.16 billion.
Shares of Lumber Liquidators Holdings Inc. fell $14.20, or 20.2 percent, to $56.22. Earlier, its shares fell to $54.31, their lowest point since February 2013.
