Mohawk Industries Inc. reported second-quarter 2024 net sales of $2.8 billion, a decrease of 5.1% from the second quarter of 2023, but net earnings for the second quarter of 2024 reached $157 million, up from $101 million in the second quarter of 2023.
Mohawk’s stock rose nearly 20%, from $133 a share to $160, on July 26 after the company reported its second quarter financial results, from $133 a share to $160, Investopedia reported.
Net sales were $5.5 billion for the first six months of 2024, a 4.8% decline from $5.8 billion in the first half of 2023.
“Our performance in the quarter reflected our focus on the controllable factors of our business, including sales initiatives, cost containment and restructuring actions,” Mohawk CEO Jeff Lorberbaum said in a statement. “Our adjusted earnings per share rose as a result of productivity initiatives and restructuring as well as lower energy and material costs, partially offset by market pressure on pricing, mix and foreign exchange headwinds.”
"Our second quarter results exceeded our expectations despite soft market conditions around the globe," the company reported. "While the long-term demand for our products is strong, residential purchases across our geographies remain weak. During the quarter, the actions we have taken improved volumes in many product categories, though the gains were offset by consumers trading down and competitive pricing. Residential remodeling is under the greatest pressure as consumers continue to defer large discretionary purchases due to inflation and uncertainty about the future. In addition, flooring remodeling is significantly influenced by housing turnover rates, which remain suppressed due to elevated mortgage rates, higher home prices and the ‘locked-in effect’ on homeowners."
