Mohawk Net Climbs 72 Percent in First Quarter

CALHOUN, Ga.-Increased sales and strong expense controls brought a healthy beginning to the fiscal year for Mohawk Industries.

For its fiscal first quarter ending on March 31, the company posted a 72 percent jump in net income to $40.4 million. Net sales increased 4.9 percent to $1.4 billion, driven by gains in volume and by price increases.

The Dal-Tile segment enjoyed a particularly strong quarter, growing sales by 14 percent due to increased residential remodeling and commercial renovations. The Mohawk segment's sales grew 1 percent, with increased carpet sales offset by declines in rug sales.

Selling, general and administrative expenses edged up 0.7 percent in dollars and shed 85 basis points as a percentage of sales, to 20.4 percent. Interest expense fell 15.4 percent. Gross margin rose nine basis points to 25.5 percent.

Looking ahead, Mohawk said industry growth should be aided by lower mortgage rates, increased home sales and higher employment. "In the second quarter, we anticipate continued sales growth and improving margins as selling prices align with material inflation," the company said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.