Analyst Upgrades Lumber Liquidators

New York, NY, April 25, 2013 -- Analyst Stifel Nicolaus has upgraded share of Lumber Liquidators to a "hold" after the firm's recent first quarter report.

"We have been forced to re-think our assumptions behind the sell rating on LL in light of the company's continuing performance on multiple metrics," the firm said.
 
Among the factors cited for the upgrade were:

Rising lumber costs may actually be helping Lumber Liquidators because the company sources less domestic wood than most of its competition, and isn't being hit as hard by inflation;

Samples in units were up dramatically in the quarter, which implies there is sales strength heading into second quarter;

The firm was able to command higher prices;

Accessories, a higher margin segment, made up a higher percentage of sales;

The company is increasing its advertising budget as a percentage of sales.

"LL put up fabulous results in what we believe is still a lackluster environment for the repair and remodel segment in general." Stifel said.


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