Lumber Liquidators Holdings, Inc. (NYSE:LL) was one of the hottest stocks on Wall Street, and has since seen its stock price drop to $16 per share due to formaldehyde emission from its Chinese laminated flooring exceeding health and safety standards. Since then, the company has stopped the sales of Chinese laminates and certain engineered hardwood products sourced from China. The company has also announced that the final resolution of the Proposition 65 lawsuit filed by Global Community Monitor and Sunshine Park LLC. So what's next for LL?
Here are my thoughts:
Declining Sales
Below is the two-year quarterly net sales chart that I have created. As you can see, in Q3 2014, the net sales have decreased as customers lost confidence in the products, resulting in a decline in the number of customers invoiced.
