Demo
LL NYSE· LL Flooring Holdings Inc.
FundamentalsNews digest Peer analysis
Login
LL NYSE· LL Flooring Holdings Inc.
Earnings report Q3 2023

LL Flooring Holdings, Inc. Reports Decline in Revenue in Latest Quarter

Segments of Revenue

In the latest quarter, LL Flooring Holdings, Inc. reported total net sales of $215.8 million, a decrease of 19.7% compared to the same quarter last year. This decline in revenue was primarily driven by a decrease in net merchandise sales, which amounted to $183.6 million, down 20% from the previous year. Net services sales also experienced a decline, totaling $32.3 million, a decrease of 18.5% compared to the same quarter last year.

Strengths

Despite the decline in revenue, LL Flooring Holdings, Inc. highlighted several strengths in their financial performance. The company's gross profit for the quarter was $68.5 million, although lower than the previous year, it still demonstrates the company's ability to generate profit. Additionally, the company's management commented that the decline in revenue was primarily due to supply chain disruptions and increased competition, indicating that the decrease in revenue was not reflective of underlying weaknesses in the company's operations.

Challenges

LL Flooring Holdings, Inc. faced several challenges in the latest quarter. The company's total net sales decreased by 19.7% compared to the same quarter last year, primarily driven by a decline in net merchandise sales. This decline can be attributed to supply chain disruptions and increased competition, which impacted the company's ability to generate sales. Furthermore, the company's selling, general, and administrative expenses remained relatively high, totaling $98.1 million, which could put pressure on the company's profitability.

Noteworthy

It is worth noting that LL Flooring Holdings, Inc. reported an adjusted operating loss of $17.1 million in the latest quarter, compared to $4.3 million in the same quarter last year. This reflects the increased selling, general, and administrative expenses and decreased gross profit. The company's management attributed these factors to supply chain disruptions and increased competition, which impacted the company's financial performance.

Summary

LL Flooring Holdings, Inc. faced challenges in the latest quarter, with a decline in revenue driven by supply chain disruptions and increased competition. However, the company demonstrated strengths in generating gross profit and management comments suggest that the decline in revenue was not indicative of underlying weaknesses. The increase in selling, general, and administrative expenses and the adjusted operating loss highlight the impact of these challenges on the company's financial performance.

Source documents

Form 10-Q  filed on Nov 08, 2023
48 pages scanned

Reference data

Company financials Q3 revenue 212M
Analyst estimates Q3 EPS beat by 12.28%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.