July 31, 2018 / 12:45 PM / 3 months ago

Lumber Liquidators reports quarterly loss, shares drop

July 31 (Reuters) - Lumber Liquidators Holdings Inc on Tuesday reported a quarterly loss from a year ago profit on higher legal costs, sending shares of the specialty retailer down 16 percent in premarket trade.

The company, which owns brands such as Bellawood hardwood flooring, faced several legal actions in 2015 after a CBS report alleged some of the company’s flooring products had high levels of formaldehyde, a known carcinogen.

Selling, general and administrative expenses rose nearly 11 percent rose to $102.2 million, partly attributable to legal settlements, including legal and professional fees of about $9.5 million.

The company reported a net loss of $1.5 million, or 5 cents per share in the second quarter ended June 30, compared to a profit of $4.5 million, or 16 cents per share, a year earlier.

Comparable store sales rose 4.7 percent, beating Wall Street estimates of 3.1 percent, according to Thomson Reuters I/B/E/S.

Net sales rose 7.2 percent to $283.47 million, also above analysts’ estimates of $280.7 million. (Reporting by Nivedita Balu in Bengaluru; Editing by Bernard Orr)

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