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Dec 31, 2023
Interface Q4 2023 Earnings Report
Reported fourth quarter and full year results, showing a decrease in net sales but an increase in gross profit margin.
Key Takeaways
Interface reported a decrease in net sales for both the fourth quarter and the full year 2023, but demonstrated strong gross profit margin improvement. The company focused on debt repayment and reinvesting in the business. Education and Corporate Office segments showed strength, while the retail sector experienced softness.
Net sales totaled $325.1 million, a 3.1% year-over-year decrease.
Gross profit margin increased to 37.9%, up 646 basis points year-over-year.
GAAP earnings per share were $0.33, with adjusted earnings per share at $0.41.
Generated $27.8 million in cash from operations and repaid $29.6 million of debt in the quarter.
Revenue by Geographic Location
Forward Guidance
Interface anticipates net sales of $280 million to $290 million for the first quarter of fiscal year 2024. They anticipate net sales of $1.26 billion to $1.28 billion for the full fiscal year 2024.
Positive Outlook
- Adjusted gross profit margin of approximately 36.0% for Q1 2024.
- Adjusted SG&A expenses of approximately $83 million for Q1 2024.
- Adjusted Interest & Other expenses of approximately $8 million for Q1 2024.
- Fully diluted weighted average share count of approximately 58.8 million shares for Q1 2024.
- Adjusted gross profit margin of approximately 35.5% to 35.8% for FY 2024.
Challenges Ahead
- Continued softness in the retail sector is expected to persist through the first half of 2024.
- Adjusted SG&A expenses of approximately 26.0% of net sales for FY 2024.
- Adjusted Interest & Other expenses of approximately $32 million for FY 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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