Stifel Analysis on LL Reveals Soft Q1, Focus on Install. Revenue

St. Louis, MO, March 19, 2019--Stifel released analysis of Lumber Liquidators’ earnings, noting expectations for 2019, “Q1 comp guidance down low single digits vs. approximately +2% consensus…Guidance for 2019 comps at flat to up slightly takes into account a lower overall industry growth rate as the fourth quarter did experience a macro slowdown as many have noted. For the year total revenue is expected to increase mid-single digits, which compared to our 5.7% sales growth estimate in 2019. Operating margin is expected to be flat or expand up to 50 bps to 1.9% to 2.4% due mostly from gross margin expansion as SG&A leverage will be muted with increased advertising spending.”

The analyst also commented on the company’s installation focus, “Installation drives revenue in 2018, focus on merchandising and marketing for 2019. Installation sales fueled ticket growth in 2018 and now account for 12% of total sales.”

Related Topics:Lumber Liquidators