Lumber Liquidators: Raid by feds sinks stock
| RICHMOND, Va.
Federal authorities on Thursday executed a search warrant at the Virginia headquarters of hardwood flooring retailer聽Lumber聽Liquidators.
Immigration and Customs Enforcement's Homeland Security Investigations spokesman Brandon Montgomery said the warrant was executed at the company's Toano, Va., headquarters and a聽Lumber聽Liquidators聽business location in suburban Richmond in coordination with U.S. Fish and Wildlife Service and the Department of Justice.
On Friday, the company disclosed that federal authorities searched its corporate offices in an action related to imports of wood flooring products. Its stock聽dropped $5.83, or 5 percent, to $107.13 after that announcement.聽
In a statement, the company said it is cooperating to provide information and documentation to "answer questions relating to the importation of certain products."聽
Lumber聽Liquidators聽Holdings Inc. has more than 305 stores in North America.
In July,聽Lumber聽Liquidators聽said its second-quarter net income jumped nearly 68 percent to $20.4 million as its revenue rose to $257.1 million and lower costs increased its profit margins. It also announced plans to construct a new East Coast distribution center outside Richmond and lease another facility in California to help make its supply chain more efficient.
The stock has traded between $47.31 and $115.59 in the past 52 weeks, and has more than doubled since the start of the year.
