2024-04-26 15:18:08 ET
Mohawk Industries, Inc. (MHK)
Q1 2024 Earnings Conference Call
April 26, 2024 11:00 ET
Company Participants
James Brunk - Chief Financial Officer
Jeff Lorberbaum - Chairman and Chief Executive Officer
Chris Wellborn - President and Chief Operating Officer
Conference Call Participants
Matthew Bouley - Barclays
Tim Wojs - Baird
Susan Maklari - Goldman Sachs
John Lovallo - UBS
Collin Verron - Jefferies
Keith Hughes - Truist
Michael Rehaut - JPMorgan
Mike Dahl - RBC
Kathryn Thompson - Thompson Research Group
Laura Champine - Loop Capital
Stephen Kim - Evercore
Sam Reid - Wells Fargo
Eric Bosshard - Cleveland Research
Presentation
Operator
Good morning, everyone and welcome to the Mohawk Industries First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please also note this event is being recorded. At this time, I’d like to turn the floor over to James Brunk. Please go ahead.
James Brunk
Thank you, Jamie. Good morning, everyone. Welcome to Mohawk Industries’ quarterly investor conference call. Joining me on today’s call are Jeff Lorberbaum, Chairman and Chief Executive Officer; and Chris Wellborn, President and Chief Operating Officer. Today, we will update you on the company’s first quarter performance and provide guidance for the second quarter of 2024.
I’d like to remind everyone that our press release and statements that we make during this call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties, including but not limited to, those set forth in our press release and our periodic filings with the Securities and Exchange Commission. This call may include discussion of non-GAAP numbers. For a reconciliation of any non-GAAP to GAAP amounts, please refer to our Form 8-K and press release in the Investors section of our website.
I’ll now turn the call over to Jeff.
Jeff Lorberbaum
Thanks, Jim. Good morning, everyone. Though economic headwinds are impacting our industry, our results reflect positive effects of the actions we are taking to enhance our performance. Our net sales for the first quarter were $2.7 billion, down 4.5% compared to last year. Adjusted earnings per share were $1.86, up 6% versus 2023 as a result of restructuring, productivity initiatives and benefits from lower cost of materials and energy, partially offset by weaker pricing and mix.
Currency exchange rates continue to affect our operating income, with a negative impact in the quarter of approximately $12 million or $0.15 on EPS. Across our regions, market conditions remained similar to the prior quarter with significant pricing and mix pressure through the industry competition for volume. Though slowing the commercial channel continues to outperform residential. Residential remodeling remained soft due to low housing sales and the impact of inflation on discretionary spending.
Retailers have reported that consumers are reluctant to initiate higher ticket projects with flooring facing greater pressure since most replacements can be readily deferred. Our teams remain focused on managing through the near-term environment, realizing sales opportunities, reducing controllable costs and completing restructuring initiatives. We continue to manage our production levels to align inventories with market demand....
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Mohawk Industries, Inc. (MHK) Q1 2024 Earnings Call Transcript