Armstrong Reports Sales & Earnings Declines for Q3
Lancaster, PA, November 5, 2019-Armstrong Flooring reported a year over year (YOY) Q3 2019 net sales decline of 20.7%. This earnings report compares the company’s current resilient-only business to resilient sales from Q3 2018.
Net loss for the quarter was $31.4 million, compared to net earnings of $7.9 million in Q3 2018.
The company reports, “The decrease in net sales was primarily due to unfavorable volumes and mix. Lower volumes in the third quarter of 2019 primarily reflected an unfavorable comparison in 2018 due to significant customer purchases in the distribution channel in anticipation of U.S. tariffs along with what the company believes to be weaker performance by several distributors in 2019. Volume was below expectations due to further inventory reductions combined with share loss in some categories within the distribution channel, and mix was driven by lower relative LVT sales as a result of distributor stocking activity in the prior year quarter.”
In September, Armstrong Flooring brought on Michel Vermette as president and chief executive officer. He comments, “Since joining the company in September I have spent time assessing the business, and it is clear that the current performance does not reflect the company’s potential. I have begun working with the teams to initiate a comprehensive review of all aspects of the business to allow us to address operational challenges, optimize our product portfolio, expand our customer reach, streamline processes and implement numerous best practices to better capitalize on market opportunities. As we begin the effort needed to overhaul and modernize the business, I am confident that the long-term upside for our company will be significant.”