Lumber Liquidators Holdings Inc. plunged the most in four years after posting second-quarter sales that trailed analysts’ estimates, hurt by allegations that flooring it sold contained unsafe amounts of chemicals.
Revenue slid 5.8 percent to $247.9 million, the Toano, Virginia-based company said Wednesday in a statement. Analysts estimated $258.4 million, on average.
Lumber Liquidators has been in turmoil since “60 Minutes” reported earlier this year that the company sold Chinese-made laminate flooring with toxic levels of formaldehyde. The retailer’s chief executive officer and chief financial officer both have left the company, and it’s being probed by the U.S. Consumer Product Safety Commission. Lumber Liquidators has since suspended sales of laminate made in China.
The company also said Wednesday in a filing that it had received subpoenas from the U.S. Securities and Exchange Commission’s New York regional office last month and in May. Lumber Liquidators said it believes the investigation relates primarily to compliance with disclosure, financial reporting and trading requirements.
The shares fell 28 percent to $13.27 at the close, the biggest one-day drop since July 2011. Lumber Liquidators is now down 80 percent this year.