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Mar 30, 2024
Mohawk Q1 2024 Earnings Report
Mohawk Industries reported Q1 2024 results with increased EPS, driven by restructuring, productivity, and lower input costs, despite economic headwinds and pricing pressures.
Key Takeaways
Mohawk Industries reported Q1 2024 net sales of $2.7 billion, a decrease of 4.5% year-over-year. However, EPS rose to $1.64, and adjusted EPS was $1.86, compared to $1.26 and $1.75 respectively in the prior year. The company benefited from restructuring, productivity initiatives, and lower raw material costs.
Net sales decreased by 4.5% year-over-year to $2.7 billion.
Earnings per share increased year-over-year to $1.64.
Restructuring and productivity initiatives positively impacted earnings.
Commercial channel continues to outperform residential.
Mohawk
Mohawk
Mohawk Revenue by Segment
Forward Guidance
The company anticipates second quarter adjusted EPS to be between $2.68 and $2.78, excluding any restructuring or other one-time charges.
Positive Outlook
- Residential flooring sales should lead the recovery.
- Consumer confidence is expected to improve.
- The housing market is anticipated to strengthen.
- Postponed remodeling projects are expected to be initiated.
- Existing home sales will normalize, a catalyst for flooring.
Challenges Ahead
- European vacation schedules will affect sales.
- Slowing commercial channel.
- Residential remodeling remains soft.
- Low housing sales.
- Impact of inflation on discretionary spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income