Lumber Liquidators Holdings Inc (NYSE:LL) shares lost as much as nearly 21% of their value in pre-market trading on Wednesday after the firm reported financial results for the second quarter, which were significantly below what Wall Street was expecting. The firm posted an adjusted loss of $20.3 million, or $0.75 per share, versus a consensus estimate of a profit of $0.06 per share. In the year-ago quarter, the firm delivered a profit of $16.6 million, or $0.60 per share. The revenues of $247.9 million, similarly undeperformed the expectations of $256.9 million and was down by 5.8% year-over-year. Lumber Liquidators Holdings Inc (NYSE:LL) is still suffering from a damaging “60 Minutes” report aired in March, the firm said, which alleged that its wood laminates sourced from China contained deadly levels of formaldehyde. Same-store sales for stores open at least a year fell 10% in the second quarter. The firm did not release an outlook for the year. Year-to-date, the stock has fallen nearly 72% in value.
Though the Lumber Liquidators Holdings Inc (NYSE:LL)’s stock lost 53.58% during the first quarter, the aggregate value of hedge funds’ holdings in the company decreased by 68.23% over the quarter, which suggests an outflow of capital during the first three months of 2015. However, a total of 28 hedge funds still reported long positions in the company as of the end of March.
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