Interface Reports Net Sales Decline of 3.4% in Q1

Atlanta, GA, May 8, 2020-Interface reported net sales of $288 million for Q1 2020, a 3.4% decline YOY.

Net loss for Q1 2020 was $102 million, compared to a net income of $7 million in Q1 2019.

Orders fell 32% in April; however, customers are delaying, not cancelling, projects so the backlog rose $45 million from the end of 2019 to the end of April.

"We had a strong start to the year, but we began to see disruption in our business due to the global COVID-19 pandemic as the first quarter progressed. We ended the quarter, which had an extra fiscal week this year, with net sales down 3%, and organic sales down 2% versus the first quarter last year," said Dan Hendrix, chairman and CEO of Interface. "The management team moved quickly in this unique situation to align operating costs with customer demand, driving first quarter adjusted EPS to $0.32, up 129% compared to adjusted EPS of $0.14 in the first quarter last year. As we face this challenging and unpredictable macroeconomic environment throughout 2020 and beyond, we expect continued solid growth in our resilient flooring portfolio, particularly in healthcare, education and industrial applications, and market leadership in carpet tile. We remain very diligent in continuing to reduce operating costs to prepare for a prolonged COVID-19 pandemic and its impacts on global commerce."