For the third straight quarter, Lumber Liquidators reported a drop in sales following a “60 Minutes” report last March that said the retailer's laminates from China contained excessive levels of formaldehyde, reports Reuters and CNBC.
In February, Lumber Liquidators breathed a sigh of relief when U.S. federal tests found a low risk of cancer from some of the company's laminate flooring, but shortly thereafter errors were discovered and the report was revised to say the risk of cancer was three times higher than previously estimated.
Lumber Liquidators said on Monday there was a decrease in both the number of customers it billed and the average sale value in the fourth quarter ended Dec. 31.
Sales at Lumber Liquidators' stores open more than 12 months fell 17.2% in the quarter, steeper than the 12% drop expected by analysts polled by research firm Consensus Metrix.
Net sales fell 13.7% to $234.8 million, coming in below analysts' average estimate of $254.5 million, according to Thomson Reuters I/B/E/S.