Shares of Lumber Liquidators (LL) dropped Friday after its founder said he had decided not to pursue a buyout of the home-improvement company.
Tom Sullivan said in an interview with Bloomberg that he had been working on a transaction, but the company’s the stock price had gotten too high and the company had declined to engage in discussions.
The shares were trading off 11% at $9.96.
Sullivan, currently the CEO of Cabinets to Go in Lawrenceburg, Tenn., said in an SEC statement filed on Friday that he had wanted to discuss such steps as buying the company or combining Lumber Liquidators with Cabinets to Go.
Sullivan bought stock for an average price of $7.88 a share, and then sold 1.25 million shares this week at an average of $11.68, according to the filing. Bloomberg said this equates to a gain of about $4.8 million.
Last month, Lumber Liquidators posted second-quarter results that missed analysts’ forecasts after the trade war and accompanying 25% tariff on imports from China into the U.S. dented the company’s bottom line.
The Toano, Va., company posted a net loss of $2.9 million, or 10 cents a share, vs. a loss of $1.5 million, or 5 cents, for the year-earlier period. On an adjusted basis, the company earned 7 cents a share, a penny shy of the 8 cents analysts polled by FactSet had been expecting.
Revenue came in at $289 million, though net sales in comparable stores were flat, “… as growth of installation services was offset by a slight decline in merchandise sales,” the company said.
Lumber Liquidators did not immediately respond to a request for comment.