Mohawk's Q2 Net Sales Down 6.7%, Earnings Up
Calhoun, GA, July 26, 2024-Mohawk reported Q2 2024 net sales of $2.8 billion, a 5.1% decline compared to $3.0 billion in Q2 2023.
For the first half, net sales were $5.5 billion, a 4.8% decline from $5.8 billion in the first half of 2023.
Net earnings increased 55% from $101 million in Q2 2023 to $157 million in Q2 2024.
For the first half, net earnings were $262 million, a 45% increase from the first half of 2023’s $181 million.
For the global ceramic business, net sales declined 3.4% to $1.1 billion for Q2 2024, and for the first half, net sales were flat YOY at $2.2 billion.
Flooring North America sales declined 4.3% to $959 million in Q2 2024 from $1 billion in Q2 2023.
For the first half of 2024, sales declined .05% to $1.9 billion from $2.0 billion in the same period last year
Flooring Rest of World sales declined 8.3% in Q2 2024 to $727 million from $793 million in Q2 2023.
In the first half of 2024, net sales of $1.5 billion declined .06% from $1.6 billion in the same period last year.
Commenting on the company’s second quarter results, chairman and CEO Jeff Lorberbaum stated, “Our performance in the quarter reflected our focus on the controllable factors of our business, including sales initiatives, cost containment and restructuring actions. Our adjusted earnings per share rose as a result of productivity initiatives and restructuring as well as lower energy and material costs, partially offset by market pressure on pricing, mix and foreign exchange headwinds. We generated free cash flow of approximately $142 million during the quarter, for a total of $239 million year to date. In the quarter, we purchased approximately 755 thousand shares, or 1.2%, of our stock for approximately $90 million.
"Our second quarter results exceeded our expectations despite soft market conditions around the globe. The commercial channel continues to outperform residential, although some softness in the category is occurring. While the long-term demand for our products is strong, residential purchases across our geographies remain weak. During the quarter, the actions we have taken improved volumes in many product categories, though the gains were offset by consumers trading down and competitive pricing. Residential remodeling is under the greatest pressure as consumers continue to defer large discretionary purchases due to inflation and uncertainty about the future. In addition, flooring remodeling is significantly influenced by housing turnover rates, which remain suppressed due to elevated mortgage rates, higher home prices and the ‘locked-in effect’ on homeowners."
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