ATLANTA - Interface , Inc. (NASDAQ:TILE), a leading commercial flooring company, today announced its financial results for the fourth quarter ended December 31, 2023. The company reported a robust adjusted earnings per share (EPS) of $0.41, significantly surpassing the analyst consensus estimate of $0.22.
However, net sales for the quarter experienced a slight decline, totaling $325.1 million, a 3.1% decrease compared to the same quarter last year, but still above the consensus estimate of $320.16 million.
The company's gross profit margin saw a notable improvement, rising to 37.9%, up 646 basis points YoY. This increase was primarily attributed to input cost deflation, higher selling prices, and favorable product mix, partially offset by unfavorable fixed cost absorption.
Interface's CEO, Laurel Hurd, attributed the strong quarterly performance to the company's strategic focus, particularly in the education and corporate office segments. She did note, however, that continued softness in the retail sector contributed to the year-over-year net sales decline.
Looking ahead, Interface provided guidance for the first quarter of fiscal year 2024 with net sales expected to be between $280 million and $290 million, aligning with the analyst consensus of $281 million. For the full fiscal year 2024, the company anticipates net sales to range from $1.26 billion to $1.28 billion, which is above the consensus estimate of $1.25 billion.
Interface's CFO, Bruce Hausmann, highlighted the company's strong momentum in gross profit margin and its commitment to debt repayment and reinvestment in the business. He expressed confidence in Interface's financial position to capitalize on growth opportunities.
The company's full-year net sales for 2023 amounted to $1,261.5 million, a decrease of 2.8% YoY. Despite the dip in revenue, Interface managed to improve its gross profit margin for the fiscal year and significantly reduce its total debt from the previous year.
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