LL Flooring Says Co Continues To Navigate Uncertainty In The Macroeconomic Environment Due To Low Consumer Confidence, Inflation, A Volatile Interest And Mortgage Rate Environment And Continued Declines In Existing Home Sales; Not Providing Financial Guidance At This Time

Author: Benzinga Newsdesk | March 01, 2024 05:08pm

2024 Business Outlook

The Company continues to navigate uncertainty in the macroeconomic environment due to low consumer confidence, inflation, a volatile interest and mortgage rate environment and continued declines in existing home sales. As a result, the Company is not providing financial guidance at this time.

The Company is, however, providing the following commentary. The Company expects:

• In terms of our sales outlook for 2024, while we strongly believe that our strategic initiatives of our CRM and Pro initiatives will improve the customer experience and help drive traffic to stores, our visibility is limited as to when the macroeconomic environment will normalize.
• Adjusted gross margins1 are expected to maintain year-over-year, driven primarily by potential reductions in transportation costs. The Company will continue to monitor the competitive pricing environment to inform its pricing and promotion strategies.
• SG&A dollar spend and SG&A spend as a percentage of sales are expected to increase year-over-year, primarily due to lower net sales as we continue to invest in our strategic initiatives while navigating a dynamic macroeconomic environment.
• Capital expenditures of approximately $15 million in 2024, primarily related to our strategic initiatives such as the rollout of Carpet across our store portfolio, and maintenance capital investments.

1Pleaserefer to the "Non-GAAP and Other Information" section and the GAAP to non-GAAP reconciliation tables below for more information.

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