- LL Flooring Holdings Inc (NYSE:LL) reported a first-quarter FY22 sales decline of 1.6% year-on-year to $279.03 million, missing the consensus of $281.40 million.
- Comparable store sales decreased 3.6% versus last year and increased 3.3% on a two-year stack basis.
- Merchandise sales decreased 2.3% Y/Y to $244.27 million, while Services sales rose 4.1% to $34.8 million.
- Adjusted EPS of $0.13 missed the consensus of $0.19.
- Gross margin contracted 350 basis points Y/Y to 37.3%, and the gross profit fell 10% to $104.1 million.
- Operating margin fell 280 basis points to 1.8%, and operating income for the quarter decreased 61.4% to $5.1 million.
- The company held $56.1 million in cash and equivalents as of March 31, 2022.
- Outlook: LL Flooring did not provide financial guidance for FY22, citing global supply chain disruptions, consumer spending, inflation, and a challenging labor market.
- "We faced macroeconomic headwinds from inflation and a shift in consumer spending to travel and leisure this year compared to stimulus and nesting spending in the first quarter of 2021," said CEO Charles Tyson.
- Price Action: LL shares traded lower by 11.7% at $13.16 on the last check Wednesday.
