Flooring Industry News November 2022

Europeans defer flooring spend

The largest flooring manufacturer in the world, Mohawk, claims that the market is under stress because European consumers “are postponing purchases and trading down.”

Chairman and CEO Jeffrey S. Lorberbaum stated to investors in a trade statement that “our operations in Europe have been more negatively impacted than others due to the exceptional energy crisis and rising inflation that has hindered the region’s economy.

Read the article in The Stocklists.

Flooring distributor warns on volatile consumer spending

The UK distributor of floor coverings, Likewise plc, has issued a warning that revenues will be below forecasts due to erratic customer purchasing.

The company stated that organic sales grew by 23% in the third quarter and that full-year revenues will surpass projections in a trading statement to shareholders. But with limited increase from 2021, profit before tax margins are now anticipated to be at or below current forecasts, at or around 2%.

Read the article in The Stocklists.

Flooring inflation running high

Despite some softening in the overall furniture sector, retail price inflation in the flooring sector is still rising.

It was anticipated that inflation in the flooring retail sector would stabilise, but according to the most recent data from the Office for National Statistics (ONS), it increased by over 2% from September’s rate of 7% to 8.7% in October.

Read the article in The Stocklists.

Slight improvement in consumer confidence index

The numbers on consumer confidence are poor, although not quite as poor as last month’s historic low.

The historic big purchase index from GfK has increased by three points to minus 38. This index measures consumer interest in “large ticket” goods like appliances, flooring, and furniture. The number was negative three at this time last year.

After the worrisome budgetary acrobatics we witnessed in September, a new prime minister is expected to bring about little more than a collective sigh of relief, according to GfK director Joe Staton.

Read the article in The Stocklists.

Sales volumes “suppressed” in seasonal trading

According to the leading distributor in the UK, the seasonal uptick in flooring sales in the run-up to Christmas is not living up to expectations.

“To date in November 2022, a month primarily dependent on residential orders, the Company has witnessed a seasonal boost, but this is below historic levels, and this trend is projected to continue until year end,” the Headlam firm stated in a trading update to shareholders.

The Midlands-based corporation attributed its performance for the year to “the impact of the cost of living crisis lowering market volumes in the UK residential sector” and predicted that it would be “marginally below the low end of the range of market expectations.”

Read the article in The Stocklists.

FURTHER READING

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