Lumber Liquidators shares plunge after headquarters search
Lumber Liquidators stock fell on Friday, a day after federal authorities executed a search warrant at the Virginia headquarters of hardwood flooring retailer.
The stock had been halted in early trading ahead of the company's response to the search, which it said relates to the importation of of some its wood-flooring products. Shares reopened 10 percent lower on Friday. Click here to track the company's stock price.)
In a release, Lumber Liquidators said it's cooperating with authorities to provide them with requested information.
"As a result of the normal course of business, the company is subject to a range of international and domestic regulations," it added. "Due to the scale of its international and domestic operations, Lumber Liquidators has policies and procedures in place for the sourcing, harvesting and manufacturing of its products designed to comply with federal and other regulations related to the importation of wood flooring products."
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 Lumber Liquidators business location in suburban Richmond in coordination with U.S. Fish and Wildlife Service and the Department of Justice.
A spokesman for the U.S. Attorney's Office for the Eastern District of Virginia did not immediately return a phone message seeking comment.
In a statement, the company said it is cooperating to provide information and documentation to "answer questions relating to the importation of certain products."
Lumber Liquidators Holdings has more than 305 stores in North America.
According to the agency's website, Homeland Security Investigations probes a wide range of domestic and international activities arising from the illegal movement of people and goods into, within and out of the U.S. It investigates immigration crime, human rights violations and human smuggling, smuggling of narcotics, weapons and other types of contraband, financial crimes, cybercrime and export enforcement issues.
In July, Lumber Liquidators said its second-quarter net income jumped nearly 68 percent to $20.4 million year over year 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.
—By The Associated Press.