Mohawk Industries reports decline in first quarter sales

The flooring multinational announced first quarter net sales of $2.5 billion, down 5.7% on the first quarter of 2024.

Mohawk Industries has announced net sales of $2.5 billion in the first quarter of 2025, a decrease of 5.7% from the first quarter of 2024 (-0.7% adjusted for constant days and exchange rates), and net earnings of $73 million. All three group segments reported a decline in net sales: Global Ceramic (-4.9% or +1.2% on an adjusted basis), Flooring North America (-4.2%) and Flooring Rest of the World (-8.8%).

Operating margin was impacted by higher input costs and lower sales volume, partially offset by productivity gains, especially in the ceramic segment.

Commenting on these results, Chairman and CEO Jeff Lorberbaum noted that conditions in the first quarter weakened sequentially as individuals have grown increasingly anxious about their future prospects.

The application in April of the new tariffs announced by President Trump is causing “more uncertainty with the global economic outlook, and softer conditions are anticipated given higher inflation, lower consumer confidence and reduced business investments”.

Although the tariff amounts and the effect on consumer spending are still evolving, at the current 10% rates it is estimated that Mohawk will incur an annualized cost of approximately $50 million, which it expects to address through price increases and supply chain adjustments as needed. The group increased its inventory levels in preparation for the tariffs being implemented, while noting that most of the products sold in the United States – ceramic tile, carpet, laminates, sheet vinyl, LVT and quartz countertops – are manufactured in factories operating in the United States or in Mexico and are not subject to tariffs under the United States-Mexico-Canada (USMCA) free trade agreement.