LL - Why Shares of Lumber Liquidators Are Higher Today
Shares of Lumber Liquidators (NYSE: LL) were up nearly 18% near market close Thursday after the company updated its full-year guidance earlier today to reflect a favorable ruling from the U.S. Trade Representative. The decision, coupled with optimistic talk out of Washington on a potential trade deal with China, has investors rushing back into the shares.
Lumber Liquidators in a statement Thursday said that the U.S. Trade Representative had ruled to retroactively exclude certain flooring products imported from China from the 10% tariff imposed in September 2018 and raised to 25% last June. The company said it expects to recognize $11 million in operating income related to recoveries from those tariffs in the fourth quarter and expects to receive upward of $25 million by the end of the second quarter of 2020.
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