Interface Revenue in Q2 up 26% with Nora, Up 2% Organically
Atlanta, GA, July 26, 2019--Interface, Inc. (Nasdaq: TILE) announced Q2 2019 net sales rose 26% YOY.
Organic sales were up 2% YOY.
Nora contributed $76 million of net sales in the quarter.
The company recorded net income of $29 million, compared to second quarter 2018 net income of $21 million.
"We delivered solid results in the second quarter with organic sales growth of 2% in line with our expectations. Our strategy to expand into the high-growth resilient flooring segment is paying off as LVT drove organic growth in the second quarter. Furthermore, our nora rubber flooring business, which we acquired in August 2018, contributed $76 million of net sales during the second quarter and grew 11% in local currency year-over-year," said Jay Gould, CEO of Interface.
"Despite a slow-growth macro environment, we enter the back half of 2019 as a stronger company. Our Carbon Neutral Floors program helped drive market share gains in key markets, including the U.S., U.K., Germany and India. Customers have positively responded to our move into resilient flooring: LVT and rubber. Those two product lines are now approximately 25% of our revenue and both grew at double digit rates in local currency. First half gross profit margin was 38.8%, up 10 basis points versus the comparable prior year period. First half adjusted gross margin was 39.3%, up 60 basis points versus last year, and our planned second half productivity initiatives are anticipated to drive adjusted gross profit margin at or above 40%. First half SG&A was also in-line with expectations and, importantly, our selling system transformation is on track, with roughly 75% of our front line sales people now live on our new CRM platform. With this momentum, we are well-positioned to capture growth in the second half of the year," noted Gould.