We have been selling and installing a broad array of brands manufactured by Mohawk Industries for many years. We are registered as a master installer for Mohawk Industries and have provided inspection services and feel verification services for the industry giant. It has come as no surprise to us, in light of overall stock market increases since the beginning of the current presidency, that Mohawk Industries has posted record numbers in sales and profit.
So, how strong was Mohawk's performance in the second quarter of 2017 compared to the second quarter of 2016?
- Sales of $2.45 billion, a 6.1 percent increase and the highest sales in company history,
- Profit of $261.75 million, a 2.2 percent increase,
- North America sales of $1.04 billion, a 6.04 percent increase, and
- Rest-of-world sales of $510.07 million, a 2 percent increase.
LVP and LVT
There's more fascinating news. Wolfe Flooring has witnessed a major adjustment in consumer demand. And, we are not alone. Many consumers are shifting their attention away from carpet in favor of hard surface flooring. More than ever before, we are watching a sharp rise in popularity of both porcelain and luxury vinyl plank and luxury vinyl tile. Carpet remains very popular, especially for those who are mindful of their budget. But, facility managers and homeowners cannot deny the benefits of the newest hard surface products. Mohawk Industries' CEO Jeffrey Lorberbaum said, "For the period, our hard surface sales outpaced carpet...."
Generally, it is true, that all boats rise with the tide. But, some rise much more successfully than others. And, regrettably, some still decline while economic conditions improve.
On July 18th, we received an email from another appreciated industry supplier. Beaulieu Group LLC filed for chapter 11 bankruptcy on July 17th to restructure its balance sheet.Beaulieu Group's President Michael Pollard said, "We have evaluated alternatives to address Beaulieu’s capital structure, and believe that restructuring through the Chapter 11 process will best position all of Beaulieu Group LLC’s businesses for future success."
Pollard spoke affirming words about the future: "We remain steadfast in our commitment to our customers and employees throughout this process." He continued, "I am confident that we have the talented and committed team capable of executing the reorganization plan. We appreciate the support of our vendors and customers as we move through this process."
We have benefited by additional purchases from Beaulieu since the change. They are hopeful: "Our intent is to emerge from restructuring as a stronger and more agile organization set to continue to be a dependable partner to our many valued customers for years to come. " Beaulieu started back in the 1970s, and we are rooting for their long-term success.