Aug 1 (Reuters) - Shares of Lumber Liquidators Holdings Inc soared 23 percent on Tuesday after the U.S. hardwood flooring retailer reported its first quarterly profit since a 2015 scandal related to allegations of carcinogens in its products dented sales.
The company reported a net profit of $4.5 million, or 16 cents per share in the second quarter ended June 30, compared to a loss of $12.2 million, or 45 cents per share, a year earlier.
Sales at Lumber Liquidators' stores open for more than a year rose 8.8 percent, beating analysts' average estimate of 5.8 percent, according to Consensus Metrix.
The results follow several quarters of losses after a report in March 2015 alleged that the company's flooring products sourced from China contained high levels of formaldehyde, a cancer-causing chemical.
Since then, amid lawsuits from investors and investigations by federal agencies, Lumber Liquidators has worked to improve product quality and shuffle senior management.
The company's shares were up 23.4 percent at $29.87 in heavy premarket trading. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sai Sachin Ravikumar)