) from Overweight to Equal-Weight, while reducing the price target from $35 to $13, after the company reported poor 2Q results. Lumber Liquidators' poor 2Q performance was largely a result of negative sales trends post April, along with significant margin pressure and elevated SG&A costs. The company's 2Q EPS of ($0.75) was significantly short of the Stephens estimate of $0.01 and consensus expectation of $0.04. The company's SSS comprised of a 2.4 percent decline in ticket and a 7.6 percent decline in traffic. Lumber Liquidators' total quarterly sales declined by 5.8 percent, following a 12.8 percent decline witnessed in the March quarter. A shift in revenue mix from laminates to engineered hardwood, which carry the highest retail price points with lower-than-average gross margins, along with a 6.3 percent decline in the average sales price, were responsible for the company's poor performance. Lumber Liquidators now plans to decrease SKUs and exit ancillary product lines outside of core wood products as part of its "Back to Basics" strategy. Analyst Rick Nelson expects the company's margins to remain under pressure for the rest of the year, with legal fees and increased costs continuing to weight on operating margins. "While we continue to believe negative impacts following the 60 Minutes story will dissipate, a recovery appears several quarters away," Nelson added. The EPS estimates for 2015 and 2016 have been reduced from $0.48 to ($1.26) and from $1.74 to $0.29, respectively.