The American hardwood flooring manufacturing and importing company has been in the midst of a major scandal since the past year. The hardwood flooring company has been facing drastic heat from the Environmental Protection Agency and many other federal authorities for creating a carcinogenic environment within many houses due to their products. The company has already paid millions of dollars in damages to various authorities and has also lost several court battles against individuals and government as well. The future doesn’t look good for the company, especially considering how badly the company fared on the stock markets this past quarter.
Lumber Liquidators and their imported hardwood flooring products were exposed last year on the CBS primetime broadcast show 60 minutes which stated that the Lumber Liquidator products could make your home extremely toxic and would make you three times more vulnerable to cancer through the material used. The company was quick to respond in action by discontinuing the product and stating that they did so. The company also paid up nearly 20 million dollars in damages over the matter closing the issue. However, as much as the company would have liked to leave the past behind, it eventually caught up with them in their business earnings.
The company was also caught in a scandal of illegally importing wood from China at a cheaper price which could also possibly be deleterious to the company and has further tarnished the company’s public image. Efforts were made by Lumber Liquidators to retain the company image by providing free air quality tests to consumers in order to test run their products. The free air tests did virtually nothing to retain the company’s image. The share market price of the company kept falling further instead.
Revenues less than expected
The company also lost nearly 20 million dollars in the share market, which translates to 73 cents per share. Lumber Liquidators, however, did make a small comeback when their share prices were re-evaluated. The revenues that came in were substantial in spite of all the problems and scandals the company underwent. The projected figures for company revenues were a little over 250 million dollars, but despite all odds, share value was reported at 234 million dollars. The company has fallen short of their projected revenues but has still managed to secure a fair continuity in light of its past scandals.