Very simple. Due to losses and lawsuit settlements, the company now has a debt load larger than ever before (but still manageable). In addition, over the last years the company has not invested enough money in their stores, so LL stores don’t look as good as competitors. Lastly, competitors are opening stores very rapidly and expanding into LL’s main markets.
The company needs as much money as possible, as soon as possible, to pay down debt, invest in stores and open new stores quickly. The company does not have years to do this. It must be done as soon as possible.
While LL has lost the overall top flooring retailer sales spot, it still has the largest nationwide network of flooring retail stores. Many of these stores are in smaller, under-serviced markets, where large scale competition is minor. Now is the last, best chance to increase prices and bank some profits. Once competitors enter these smaller markets and erode LL’s niche position, it will be harder to profitably raise prices.
The company must raise prices, rebuild the balance sheet so they can invest in stores and be in a stronger position to face the on-coming competition.