Interface's Q1 Sales Down 6.1% YOY

Atlanta, GA, April 29, 2016—Interface, Inc. announced sales of $222.6 million for Q1 2016, compared to $236.9 in Q1 2015, a decrease of 6.1%.

Net income during the first quarter of 2016 was $12.9 million, or $0.20 per diluted share. This compares with net income of $12.3 million, or $0.19 per diluted share, in the first quarter last year.

“In the Americas, our first quarter sales were down 6% year over year,” said the company. “The sales decrease was mostly due to geographical pockets of weakness in the oil and gas industry in the U.S., Western Canada and South America, as well as customer initiated project delays in our InterfaceServices business. The declines were seen in both the corporate office segment (down 5%) and non-office segments (down 9%), mostly within the government and education sectors. FLOR sales decreased 17% year over year, with volume down across all sales channels except crossover sales by our commercial salesforce. Currency fluctuations negatively impacted sales in the Americas by approximately $1.5 million.”

“Interface’s 1Q results were a mixed bag in our view,” said analyst Stifel. “The top-line is obviously challenged, although the impact from one less week was somewhat less than we had modeled. On the other hand, orders were weak, down high single digits from the year prior after adjusting for FX and the 13 versus 14 week comparison.”

Stifel also noted that there was a discussion during the Interface Q1 earnings conference call about selling luxury vinyl tile with sourcing out of China, and also of designing carpet tile products at lower price points to compete in areas where Interface has previously played.