LL Flooring: Book Value Is Diminishing Quickly Due To Weak Results

Summary

  • LL Flooring Holdings reported -20.5% comparable store sales and -7.9% adjusted operating margins in Q3 2023.
  • It was also hit with $16.2 million in additional costs related to antidumping duty changes on certain imports from 2012 to 2013.
  • LL Flooring has limited its near-term cash burn with the help of drawing down its inventory.
  • Book value has decreased from near $9 per share at the end of 2022 to a bit over $6 per share at the end of Q3 2023.
  • Tom Sullivan has made another offer for LL Flooring, but at a significantly reduced price compared to his May 2023 offer.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

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LL Flooring Holdings' (LL) Q3 2023 results show that it is dealing with serious challenges. LL Flooring's comparable store sales were down -20.5% year-over-year and -27.8% on a two-year stack. Its product margins were decent, but the significant decline in

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This article was written by

11.53K Followers
Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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