LL - Lumber Liquidators: Significant Improvement In Operating Margins

• Comps were up +10.9% in Q3 2020 and adjusted operating margins reached 9.7%.
• These results will be hard to sustain since part of the Q3 sales growth reflected a shift in projects from earlier in the year due to the pandemic.
• Lumber Liquidators also is being hit by a re-imposition of 25% Chinese tariffs.
• It has worked hard to mitigate the effect of tariffs and has also improved its cost structure.
• Thus 4% to 5% adjusted operating margins could be achievable even with tariffs.

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