Mohawk Industries reported a net loss of $534 million in the third quarter of 2022, compared with earnings of $271 million during the same period last year.
Net sales increased 3.6% in the third quarter to $2.9 billion. “Our sales were weaker than we anticipated, as the retail channel softened across all regions and product categories,” Chairman and CEO Jeffrey Lorberbaum said in a statement. “The U.S. is being impacted by high overall inflation and mortgage rates that have risen from below 3% to approximately 7%. The residential market, which is the most significant part of our business, is expected to decline further before we see an inflection point.”
Lorberbaum added that it was challenging to predict the duration of current economic conditions or how they will impact the flooring industry.
“As central banks around the world continue to raise interest rates and inflation reduces discretionary expenditures, we expect our businesses to remain under pressure,” he stated.
The company’s full third quarter report can be found here.
