Mohawk Sales Declined 3.6% in Q4, Earnings Down 82%

Calhoun, GA, February 10, 2023-Mohawk’s net sales for Q4 2022 were $2.7 billion, a 3.6% decline compared to Q4 2021’s $2.8 billion.

Net earnings for Q4 2022 were $33.5 million, an 82.3% decline compared to earnings of $189.1 million in the prior year quarter

For the fiscal year 2022, net sales were $11.7 billion, a 4.3% increase compared to fiscal year 2021’s $11.2 billion.

Net earnings for fiscal year 2022 were $25.2 million, a 74.8% decline compared to earnings of $1.0 billion in fiscal year 2021.

Net sales for the global ceramic business were $987.7 million in Q4 2022, a 4% increase compared to sales of $949.5 million in the same period last year. For the fiscal year, global ceramic sales rose 10% to $4.3 billion, from $3.9 billion in the same period the prior year.

Flooring NA sales for Q4 2022 were $946 million, a 5.4% decline compared to sales of $1.0 billion in the same period last year. For fiscal year 2022, sales were $4.2 billion, a 2.4% increase compared to sales of $4.1 billion in the same period last year.

For Q4 2022, flooring rest of world sales were $717 million, a 10.1% decline compared to sales of $797.7 million in Q4 2021. For fiscal year 2022, flooring rest of world sales were $3.2 billion, a 1.9% increase compared to sales of $3.2 million in the prior year period.

Commenting on Mohawk Industries’ full year and fourth quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, “After a strong beginning to 2022, the U.S. housing market declined under pressure from rising interest rates and high inflation. In Europe, energy and overall inflation escalated, and consumers reduced discretionary spending to pay for essentials. With lower home sales and residential remodeling in the second half of the year, our flooring volumes decreased. Throughout the year, commercial new construction and remodeling activity outperformed residential.

“Our fourth quarter revenues were driven by price increases and strength in the commercial channel, which continued to benefit from ongoing remodeling and new construction projects. Sales across our businesses were slower than we expected in the quarter as residential flooring sales contracted with rising interest rates, declining home sales and lower consumer confidence. As a consequence, our customers lowered their inventory levels, and consumers reduced spending for renovation. In response, we scaled back production rates and lowered our inventories, which increased unabsorbed overhead expenses. We curtailed spending across the enterprise, though inflation offset many of our initiatives. In both Flooring North America and Flooring Rest of the World, we are taking restructuring actions in specific areas to align our operations with the present market conditions. We have reduced our planned capital spending until we see greater certainty in our markets around the world. During the quarter, energy and material costs around the world began to decline, which should positively affect our future results.”