Mohawk Earnings Beat, Faces Tariff and Market Pressures

Mohawk Industries reported adjusted first-quarter earnings of $1.52 per share, beating analyst expectations, though revenue fell 5.7% year-over-year to $2.53 billion, slightly below estimates. The company cited challenging market conditions, including a slowdown in residential remodeling and weaker consumer confidence, as causes for the declines. CEO Jeff Lorberbaum warned that new global tariffs, especially significant U.S. tariffs on Chinese imports, are expected to add about $50 million annually in costs, leading to inventory increases and planned price hikes. Most imported ceramic tile and some luxury vinyl tile from Mohawk’s Mexico facilities are exempt from these tariffs under the USMCA agreement. The stock has dropped over 10% year-to-date as the company faces additional challenges from competitive pricing pressures and rising material costs. Management remains cautious due to ongoing market uncertainty and possible further impacts from global trade policy shifts.