Lumber Liquidators fell by as much as 15% in early trading after the company reported a wider-than-expected first-quarter loss. At 9:30am shares in the company are down about 13%.
The laminate-flooring retailer’s sales fell for the fourth straight quarter. The company has been in trouble since March. “60 Minutes” aired an episode that alleged it sold flooring with harmful levels of formaldehyde.
Lumber Liquidators’ sales fell 10% to $234 million while its net loss was $1.20 a share. Analysts had forecast -$0.22, according to Bloomberg.
In April, the company reached a settlement agreement with the State of California Air Resources Board over its inquiry and was billed a $2.5 million fine.
The company said Tuesday that was handed a third subpoena from the New York Regional Office of the Securities and Exchange Commission (SEC) related to financial reporting and disclosure.
“Our sales results fell short of our expectations, but we continue to see improvement in our gross margin from the lows of 2015 driven by our strategic pricing initiatives,” said CEO John Presley in the earnings statement.
Hedge fund manager Whitney Tilson, a key source for the “60 Minutes” episode, said he re-entered a short position after covering his last position in December.