Anti-Dumping Decision Could Hit Lumber Liquidators

New York, NY, Dec. 1, 2010 -- An anti-dumping petition that has been filed by several domestic hardwood flooring manufacturers against Chinese manufacturers of engineered hardwood flooring could have a significant impact on Lumber Liquidators, according to analyst Stifel Nicholas.

According to the analyst, approximately 11% of Lumber Liquidators' total sales are engineered hardwood floors and that roughly 70% of it comes from China.

The petition is seeking duties of more than 200%, a decision is likely by next summer, and duties could be retroactive to March.

Stifel said that Lumber Liquidators "is obviously building inventory in advance of this date" and does have a contingency plan to source from other areas.

The duties could result in some higher costs and "disruption to as much as 7-8% of total revenues," Stifel said.