Home / Knowledge / News / Textiles / Sales decline almost 5% at Interface in Q2 FY'12
Sales decline almost 5% at Interface in Q2 FY'12
Jul '12

Interface Inc. a worldwide floor-coverings company and global leader in sustainability announced results for the second quarter ended July 1, 2012.

Sales for the second quarter of 2012 were $254.6 million, compared with sales of $267.6 million in the second quarter of 2011, a decline of 4.9%.  Approximately 3% of the sales decrease was related to fluctuations in currency exchange rates relative to the year ago period. 

Operating income for the second quarter of 2012 was $22.0 million, or 8.7% of sales, compared with last year's second quarter operating income of $26.1 million, or 9.8% of sales.  Net income in the second quarter of 2012 was $10.3 million, or $0.16 per share, compared with net income of $12.8 million, or $0.20 per share, in the second quarter of 2011.

"The best news of the quarter was the resurgence of our Americas modular business, as it turned in record second quarter sales and significantly improved its profitability on a sequential basis versus the first quarter," said Daniel T. Hendrix, Chairman and Chief Executive Officer. 

"We experienced strong demand across many of the commercial segments we serve in the U.S., and we saw continued growth within our FLOR consumer business, due both to new store openings and same-store growth.  Sales in our Europe modular business were down only 2% year-over-year in local currencies in a tough operating environment, but the negative currency impact resulted in a steeper decline of 13% year-over-year as reported in U.S. dollars. 

“Most of this market's difficulties were found in Southern Europe, partially offset by relative stability in Germany, Holland and the U.K.  Soft market conditions persisted in Asia-Pacific, primarily due to reduced spending by multinational corporations, and we were faced with a very tough year-over-year sales comparable in Australia.  Nevertheless, with solid operational execution, we continued to generate very respectable profitability in the region."

Patrick C. Lynch, Senior Vice President and Chief Financial Officer, commented, "Our efforts to reduce operating costs have been a key aspect of our ability to generate solid financial performance in a challenging market.  Combined with the impact of our selling price increases from March, these efforts once again contributed to sequential improvement in gross margin to 33.2% from 32.7% in the first quarter. 

“As a percentage of sales, SG&A declined sequentially to 24.6% from 25.5% in the first quarter, while operating margins expanded significantly from first quarter levels to 8.7%.  Going forward, we expect to see additional benefits from our cost reduction efforts, as the full benefit of savings from the closing of our Shelf facility take hold in the second half of the year."

Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Manuj Terapanthi

Transparent supply chain and fair trade will boost sustainable market

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search