LL - Lumber Liquidators: Tariffs Negatively Impact Growth And Margins
Lumber Liquidators (LL) has seen its stock suffer due to the tariffs placed on Chinese imports. It currently imports around 40% of its merchandise from China, and while it should be able to mitigate much of the damage from tariffs, that issue will likely have at least some impact on near-term results.
If tariffs result in 2019 comparable store sales going from +4% to +2% (due to higher prices leading to some projects being put off) and in a 1% hit to gross margins (from Lumber Liquidators absorbing some of the cost increase),