Interface's Q2 2023 Sales Declined 4.9%, Income Down 6%
Atlanta, GA, August 4, 2023-Interface reported Q2 2023 net sales were $329.6 million, down 4.9% versus $346.6 million in the prior year period. Net sales for the first six months of 2023 were $625.4 million, down 1.5% versus $634.6 million in the prior year period.
The company recorded net income of $15.8 million in Q2 2023, a decline of 6% compared to Q2 2022 net income of $16.8 million a year earlier.
The company recorded net income of $15.1 million in the first half of 2023, a 50% decline compared to first half 2022 net income of $30.1 million.
“Our second quarter results came in as we anticipated with currency neutral net sales down 5% against a particularly strong prior year comp that was up 23%. We saw steady order demand during the quarter and our backlog remains solid, up $23 million since the beginning of the year. We continue to benefit from effective execution of our global diversification strategy and remain focused on key segments, including education, healthcare, and corporate office. Education sales were particularly robust in the second quarter, up 7% year-over-year, as facilities teams and administrators invested in refurbishment and maintenance projects during their summer break,” commented Laurel Hurd, CEO of Interface.
“Our gross profit margins improved sequentially to 33.9% in Q2 due to higher pricing and favorable product mix, partially offset by lower fixed cost absorption,” added Hurd. “Our One Interface strategy is progressing as planned. Importantly, we recently hired the company’s first chief supply chain officer, a new global leader responsible for expanding our gross margins through efficiency and productivity initiatives across our global manufacturing and supply chain footprint. We are advancing well through our multi-year initiatives and remain focused on leveraging the strength of our entire organization to drive improved margins and profitable growth across the business,” concluded Hurd.
“In alignment with our continued focus on debt repayment as a top capital allocation priority, we repaid $25.9 million of debt during the second quarter, and our debt balances were down $69.8 million year over year. As we look to the back half of the year, we remain focused on strengthening our balance sheet and continuing to improve gross margins,” added Bruce Hausmann, CFO of Interface.