Mohawk Increased Sales & Revenues in Q1

Calhoun, GA, April 27, 2018-Mohawk’s Q1 net sales rose 8.6% YOY to $2.4 billion. Revenue increase for the quarter was 4.1% (on constant currency). Earnings per share were $3.01, beating estimate by a penny.

Flooring North America sales increased 1.2% YOY. “Residential carpet improved and LVT sales grew in both residential and commercial,” says analyst Stifel. “Raw materials and freight grew more than expected so another 6% to 7% carpet price increase was announced for the end of Q2, which should benefit Q3. But volumes domestically are challenged and the input cost escalation in Q1 will impact Q2 margins.”

For the quarter, the company’s global ceramic business grew sales by 11.6% YOY, and its flooring rest of world rose by 18%. “Flooring Rest of World sales increased 18% and 4% on constant currency,” says Stifel. “We were looking for 20% growth including the FX influence.”

Mohawk’s Godfrey Hirst acquisition is expected to close by the end of May adding $180 million of revenue for calendar 2018, reports Stifel.