Retail Demand Was Soft in Q3

St. Louis, MO, November 7, 2019-Stifel released its analysis of Lumber Liquidators’ Q3 performance, which speaks more broadly to depressed Q3 demand across the board.

“After seeing soft demand in July and double-negative comp growth in August, sales trends improved in September and were positive in October but to a lesser extent. Margin improved in Q3, but inventory coming through the P&L is now seeing the impact of the 25% tariffs. This should continue into the first quarter but mitigation efforts against the 25% rate will begin to take hold in 2020 meaning 4Q should see the worse from tariffs. 

“Quarter sales trend ended quarter on high note. July started off weak as management commented on the second quarter conference call.”