Price hike due for Mohawk rugs

Calhoun, Ga. – In its first-quarter conference call today, Mohawk Industries said it is seriously considering passing along raw material price hikes to customers of its soft flooring products, which includes the Mohawk Home division.

Jeffrey Lorberbaum, chairman and ceo, said during the company’s first-quarter earnings call that if climbing costs for oil-based raw materials and chemicals used to produce its soft flooring products “continue like they've been at the moment, most likely we'll attempt to pass those through to our customers at the right moment in time.”

When asked by an analyst if the price increases will kick in during the second quarter, Lorberbaum said Mohawk has not yet made a decision on the timing. “We haven't made a decision as to when. It’s a fluid market and we're still gathering information,” he said, adding that Mohawk has employed promotional activity over the past few quarters to help alleviate the raw material price hikes.

“We have shown reasonable discipline in how we are going about it and so we don't collapse the entire pricing structure of our products.”

Carpeting was a poor performer for the company during the quarter. Lorberbaum said assortments are shifting: polypropylene and staple nylon are decreasing, but polyester and filament nylon are increasing.

Mohawk Industries reported quarterly net earnings of $90 million, up 14% from last year. Net sales of $1.86 billion, were down 3% from the same period a year ago.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!