Analyst Says LL Better Positioned for 2015

New York, NY, Dec. 8, 2014 -- Analyst John Baugh of Stifel Nicolaus recently toured Lumber Liquidators' new East Coast distribution center and met with management with a group of investors.

He noted that the company should be facing a better set up for 2015 as compared to the previous couple of quarters and even fourth quarter.

"Overall, it is clear that (Lumber Liquidators) is taking a long-term approach to the business in light of the significant investments being made this year," Baugh said.

"Changes made in the logistics operation are all centered on expanding capacity, improving product flow, and changing smaller logistics vendors out with vendors able to operate on a much bigger scale. We see management as having goals to continue to grow (the company's) scale, evidenced by the significant increase in warehousing capacity over the past several years and more recently with an increase in finishing capacity."

Baugh said the firm seems to have fixed its out-of-stock issues that have affected many of its top selling products.

The new distribution center is roughly 1 million square feet, which is an overall increase from 800,000 square feet at its current operation.

Baugh also noted the company is still testing ceramic tile in three stores (Long Island, Brooklyn, Rockville, MD) with three different concepts.