Trex posts a strong quarter
Pointing to the continued appeal of the outdoor living category, Winchester, Va.-based Trex reported first quarter sales of $374 million, up 56 percent from the same quarter last year.
"This was an exceptionally strong quarter for Trex, reflecting the continued appeal of the Outdoor Living category and demonstrating strong consumer demand for Trex branded products,” said Bryan Fairbanks, president and CEO.
A shift of the company Early Buy season from the fourth quarter of 2023 added approximately $75 million in incremental first quarter 2024 sales, the company said.
Net income increased to $89 million, up from $41 million in the year-ago quarter.
“Sell-through for premium products was at double-digit levels in the first quarter, as our expanded portfolio drove strong end-market demand, and our channel partners took advantage of our Early Buy program, after ending the year with historically low inventories."
The first quarter saw the company begin accepting orders for Trex-branded deck fasteners, a new line that positions Trex as a "one-stop supplier" for decking, railing and accessories, Fairbanks said.
In the company’s earnings release, the CEO added that the supply chain is solid. “First quarter trends and feedback from the Trex dealer and distributor network indicate that the industry has returned to stability and normalized stocking behaviors,” Fairbanks said. “Channel inventories are at appropriate levels, and those inventories were built to support our partners’ ability to meet the seasonal nature of the decking and railing business.”
