Analyst Bullish About Lumber Liquidators

New York, NY, April 18, 2011 -- Analyst Stifel Nicolaus said it is maintaining a "hold" rating on Lumber Liquidators stock but overall is very bullish about the company long-term.

Stifel calls Lumber Liquidators a "category killer" in wood and laminate flooring and said its primary competitors are independent flooring stores, not the home centers as many investors believe.

Stifel also said new executives in place as chief operating officer and chief merchandising officer have significant retail experience.

"Sourcing has and should remain a key part of Lumber’s value proposition going forward, which is why we are positive about these recent hires," Stifel said.

stifel noted that there has also been a significant shift in Lumber Liquidators’ product assortment over the past five years as the percentage of hardwood has dropped from 72% of the mix in 2006 to only 54% of the mix in 2010, while laminates have risen from 10% of the mix to 21% while moldings and accessories have jumped from 8% to 14%.