The coronavirus pandemic sickened the market for carpet and other floor coverings this spring, cutting sales and generating losses for two of the biggest manufacturers that reported second quarter results on Thursday.
Mohawk Industries, the biggest floor covering company in the world, reported a 21% drop in second quarter sales and a net loss of $48 million, or 68 cents per share. The Dixie Group, Inc. said Thursday its sales in the second quarter fell by 39% from a year ago, swelling the company’s operating losses to nearly $7 million, or 46 cents per share, during the 3-month period.
“Though sales trends have improved significantly since government restrictions were lifted, the current environment is the most unpredictable in the history of our business,” Mohawk CEO Jeff Lorberbaum said in the company’s quarterly earnings report for the three months ended June 30.
Although Dixie sales have rebounded from the earlier decline of up to 54% in April, Dixie CEO Dan Frierson said the carpet and floor covering manufacturer still faces an uncertain market as consumers respond to the health and economic challenges from the coronavirus.
Mohawk and Dixie both suspended some of their operations in April as sales plunged, but they are back in production now as sales are showing signs of improvement. But the companies are still cutting costs after trimming some operations in response to the economic slowdown and uncertainty caused by the pandemic.