Its rug business began to come back after the initial pandemic effects as retailers, particularly home centres and mass merchants, reopened
Mohawk Industries’ net sales dropped 20.7% in Q2 for a total of $2.05 billion, while its net earnings fell 123.8% for a loss of $48.3 million, compared to the same period in 2019.
For the six months ended June 27, net sales for the company decreased 13.8% for a total of $4.3 billion from the prior-year period, while its net earnings tumbled 80.8% for a total of $62.3 million, the flooring giant reported.
“Though sales trends have improved significantly since government restrictions were lifted, the current environment is the most unpredictable in the history of our business,” said Jeff Lorberbaum, chairman and CEO. “During the quarter, all of our businesses were dramatically impacted, with most of our customers and facilities operating either in a limited capacity or completely shut down for some time.”
After being “severely impacted” in April due to the pandemic, its rug business began to come back as retailers reopened, with home centers and mass merchants rebounding first, said Chris Wellborn, president and COO, and president, global ceramic, during a conference call with analysts Friday. “We’re increasing production to improve our service and meet our customer needs,” he added.
Though low-interest rates, increased consumer spending on the home and remodeling activity and rising home prices are positive drivers for the market, the pandemic still makes everything uncertain, said Lorberbaum.
Lorberbaum introduced the company’s cost-reduction initiative, which includes reducing SG&A, headcount and lower-performing products and SKUs. In addition, it is shuttering less efficient operations and investing in more productive equipment. The largest of these changes are in the U.S., where luxury vinyl tile sales growth and the strong dollar have impacted many of its businesses, a release said. The initiative is expected to save approximately $110 to $120 million annually and be completed later next year.
By: Andrea Lillo – www.hometextilestoday.com
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