LL - Lumber Liquidators: Expiration Of Tariff Exemptions May Noticeably Reduce Operating Margins
Lumber Liquidators (LL) appears significantly overpriced now as its stock has increased to around $24 despite the expiration of tariff exclusions. I could understand the case for it being worth $20+ if the tariff exclusions were extended, but the reintroduction of tariffs makes Lumber Liquidators a sell at its current share price.
Effect Of Tariffs
Lumber Liquidators mentioned before that 25% tariffs could create around $56 million in annualized headwinds to operating income. It was able to fully offset $22 million in annualized headwinds (from the 10% tariffs) through mitigation efforts, although