Lumber Liquidators: Some Products Relabeled Because Of Inapplicable CARB Compliance Numbers

Lumber Liquidators Holdings Inc. disclosed in a regulatory filing on Monday, in response to inquiries over why it relabeled certain engineered hardwood flooring products, that it did so because a supplier put some California Air Resources Board compliance numbers on some products that were not applicable. The company said the products were still CARB Phase II compliant. The stock rose 1.9% in premarket trade. It has tumbled 69% year to date through Friday, while the S&P 500 has gained 2.4%. The company's statement: "Lumber Liquidators discovered in an internal review that a supplier had included an inapplicable CARB certificate number on the label for a limited number of engineered hardwood flooring products. This labeling issue does not impact the CARB Phase II emissions compliance for these products. After consultation with our advisors and out of an abundance of caution, we held the products until the labeling could be revised. The revised labels remove the inapplicable certificate number, but retain the supplier's statement that the product is CARB Phase II compliant. We have advised the California regulators that we relabeled the products to address this matter."