Share prices of Lumber Liquidators took a dive Thursday, after the Toano, Va.-based company lowered its earnings and revenue forecasts.
The company announced that it expects earnings of 18 cents to 20 cents per share for the second quarter, down from 32 cents in the same quarter last year. Net sales for the full year are now expected in the range of $670 million to $700 million, down from a previous range of $700 million to $730 million.
The share price of the hardwood floor retailer ended Thursday at $18.32, down 28.6% on the day.
In a prepared statement, Lumber Liquidators president Jeffrey Griffiths said: “Our second-quarter net sales were weaker than expected as we believe value-conscious consumers became more price sensitive and cautious in their discretionary spending." He said pressures challenging large-ticket purchases may continue to be volatile into the second half of the year.
The company will release its full second-quarter results on July 26.