LL - LL Flooring Holdings plummets on Q1 estimates miss

LL Flooring Holdings (LL -13.8%) plunges on Q1 estimates miss as comparable store sales decreased 3.6% Y/Y, but increased 3.3% on a two-year stack basis. The Co. reported record sales to Pro customers and a 4.1% increase in net services sales, which partially offset a decrease in sales to homeowners. Adj. gross margin of 37.2% decreased 130 bps, primarily reflecting significantly higher transportation and material costs that the Co. was able to partially mitigate through pricing, promotion and alternative country/vendor sourcing strategies. Adj. operating margin of 1.7% decreased 340 bps Y/Y, primarily reflecting increased SG&A as a percent of net sales and lower gross margin. During Q1, the Co. opened seven new stores, bringing total store count to 431 as of March 31, 2022. Also, increased total inventories by $64M at March 31, 2022 compared to December 31, 2021. The Co. reduced the percent of merchandise receipts subject to Section 301 tariffs to 16% from

For further details see:

LL Flooring Holdings plummets on Q1 estimates miss