Katie O'Brien
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Katie O'Brien in Senior Content Editor,

Lumber Liquidators Drop 8% in Wake of Formaldehyde Scandal

Lumber Liquidators (NYSE: LL) stock fell again on Thursday, according to Reuters, down eight percent from the previous day. The company has seen financial downturn since news network CBS aired a segment of “60 Minutes” pegging the Chinese manufactures of their signature hardwood flooring of ignoring formaldehyde regulations.

The company attempted to explain the manufacturing process Thursday, and stood by their product, Reuters reported. The company also reported that their gross margin for 2015 would most likely fall between 37 and 37.5 percent.

Reuters commenter You can’t fix stupid said:

“The race to the bottom...

Cheaper products, more low quality products, products with less lifetime for faster replacement, false advertisement... Strategies used by many US companies to maintain margins.

When will we learn that margins are maintained by producing better products, better quality, longer lifetime, better functionality.

Apple is not so successful because its products are the cheapest in the marketplace.

Think BMW, not Geo Metro.”