Lumber Liquidators (NYSE: LL)

On Tuesday before the market opened, Lumber Liquidators reported a surprise loss on their third-quarter earnings. Earnings per share came out at a loss of 66 cents on $257.2 million in revenues while analyst were looking for $261.8 million.

Same-store sales growth was also disappointing coming in at 3.8% versus 5.3% expected from analyst.

Lumber Liquidators Technicals

This was an unexpected result and investors are showing their concern in the pre-market price action with shares currently trading below $33, dipping below a major support line at $34. Below $34 we don’t have much for support until we get to pre-market lows at $31 and then $30 which is another major support area followed up by the 200-day moving average currently at $28.67.

If shares try to recover we could see resistance at $34 followed up by the 20-day moving average currently at $35.50. Above that, we have $36 and $37 both acting as resistance levels.

Look for shares to be very volatile today on heavy volume with possibly wide spreads, especially at the open.

CEO Comments

Dennis Knowles, Chief Executive Officer, commented, “We saw continued growth in sales and positive comp store growth for the fifth consecutive quarter. That is despite the unusually severe hurricane season that we believe had a slight negative impact on net sales in some of our stores.  A lot of credit should be given to our associates directly impacted by these storms. Their resiliency and commitment were inspiring, and our customers appreciated their responsiveness. We saw gross margin expansion as well as improvement in operating results on an adjusted basis. We remain confident in the long-term strength of our unique business model, our value proposition, and the investments we have made in the capabilities of our people.” 

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