The Russian invasion of Ukraine pulled the rug out for investors in the world’s biggest floor-covering manufacturer, reducing shares of Mohawk Industries to their lowest level since late 2020 on Tuesday.
Shares of Mohawk, which a JPMorgan Chase report ranked among the top U.S. stock-traded companies doing business in Russia, fell more than 5.6%, or $8.35 per share, to close Tuesday at $139.91 per share. Mohawk shed more than $565.5 million in market value on Tuesday.
The company’s shares are now down 23.2% so far this year amid concerns that rising petroleum and labor prices will push up expenses and fears that higher interest rates and a war in Ukraine might dampen the economic recovery.
In 2011, Mohawk Industries expanded its global footprint and entered the Australian flooring market through the acquisition of the only national laminate and hardwood distributor and began production of laminate in Russia to maximize market share. The JPMorgan Chase macro research reports said 4.3% of Mohawk’s sales come from Russia and Ukraine.
Mohawk, which is headquartered in Calhoun, Georgia, is the biggest carpet and tile maker in the world with sales of more than $11.2 billion last year.