American Woodmark profits move forward
Cabinet manufacturer American Woodmark reported second quarter 2024 sales declined 15.6% to $473.9 million from second quarter 2023 sales of $461.5 million.
Net sales for the first six months of fiscal 2024 fell 12% to $972.1 million.
But the Winchester, Virginia-based company posted a second quarter net income of $30.3 million, rising 5.4% in comparison to a net income of $28.8 million for the same period a year ago.
For the first six months of its fiscal year, American Woodmark reported a net income of $68.2 million. This marks a 39.5% increase from a net income of $48.9 million in the first half of the prior fiscal year.
American Woodmark attributed the rise in earnings to operational improvements in manufacturing facilities, a stabilizing supply chain, and reduced overhead spending.
On Nov. 29 the company’s board of directors authorized a stock repurchase program of up to $125 million of American Woodmark’s outstanding common shares.
Shares of American Woodmark closed at $72.40 on Nov. 30 compared to $72.03 on Nov. 29.
Brands produced by American Woodmark include Shenandoah, Waypoint, Timberlake, Professional Cabinet Solutions, allen + roth, Hampton Bay, Estate, Glacier Bay, and Project Source, among others.
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The Bottom Line: While sales decline during a tough economic cycle for home improvement spending, profits move ahead 5.4% in the second quarter and soar nearly 40% for the first six months of fiscal 2024.
What the CEO said: “Our teams delivered strong financial performance in the second quarter of fiscal year 2024 despite the slowing demand environment,” said Scott Culbreth, president and CEO of American Woodmark. “Consistent with the first quarter of fiscal year 2024 performance, net sales and Adjusted EBITDA exceeded our expectations as improved operational performance continues.”
For the full fiscal 2024, American Woodmark said it expects a low double-digit decline in sales.
Company info: Click here to read the full second quarter 2024 financial report from American Woodmark.
