Lumber Liquidators shares declined Friday, after news of its founder pulling back from plans to buyout the home-improvement company.
In an interview with Bloomberg, Tom Sullivan indicated that he had been working on a transaction, but had to re-think the plan after perceiving that the company's stock price had gotten too high and the company had declined to engage in discussions.
Last month, Lumber Liquidators reported second-quarter results that fell short of analysts' expectations, amidst the 25% tariff on imports from China that posed headwinds to the company's margins. The company also cut its full-year guidance, citing softening customer traffic and an tariff uncertainties. It now expects same-store sales to be flat for the year, and forecasts low-single digits growth in revenue.
According to a SEC filing on Friday, during the time span of about a month, Sullivan, bought stock for an average price of $7.88 a share, and then sold 1.25 million shares this week at an average of $11.68. That resulted in a gain of about $4.8 million for him, according to Bloomberg calculations.