Use access key #2 to skip to page content.

alstry (35.21)

Mohawk Gets a Haircut?????

Recs

6

July 08, 2008 – Comments (4)

Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk offers a complete selection of carpet, ceramic tile, laminate, wood, stone, vinyl and rugs.

MHK warned after hours:

The lower earnings expectation for the quarter is primarily due to the continuing decline in the U.S. residential market, slowing European demand and rapidly increasing raw material and energy costs. We are implementing multiple price increases to offset the rising costs......

Slowing sales so raise prices multiple times???????

Wow, that is going to really boost revenues next quarter.  The sheep keep getting fleeced.

4 Comments – Post Your Own

#1) On July 08, 2008 at 6:35 PM, alstry (35.21) wrote:

Is everybody raising prices to offset slowing sales????

Sealy's announcement tonight:

"The U.S. mattress retail environment deteriorated during the second quarter of 2008, impacting our ability to drive domestic sales volumes," said Larry Rogers, Sealy's interim chief executive of North America.

"Looking ahead, we expect our second-half performance to be challenging as industry trends weakened further in June and retail traffic remains soft," Rogers said, noting that the company also expects significantly higher material costs and additional promotional expenses.

Rogers said the company will implement price increases.....

Factoring Office Depot today, and Mohawk and Sealy and Rocky Mountain Chocolate Factory after hours, the retail environment seems to be clearly deteriorating.

Report this comment
#2) On July 08, 2008 at 7:10 PM, madcowmonkey (< 20) wrote:

Clearly.

Hey I thought I replied to your retirement blog. Did it not come through or was I just fantasizing about writing to alstry. Scary ifthe latter is the case:) 

As for Mohawk. They most likely (IMO) grew too fast when times were good in the housing industry and now they are paying for it. I am still surprised when I hear people talking about how they did not expect the housing issues to come about.

Report this comment
#3) On July 08, 2008 at 7:11 PM, DemonDoug (91.96) wrote:

= stagflation.  not deflation. cheers. :)

Report this comment
#4) On July 08, 2008 at 7:32 PM, alstry (35.21) wrote:

Madcow....one or the other on the retirement post....either way just par for me.

Demon......we are clearly at an inflection point.....my guess is something BIG, really BIG, will happen within the next 4 to 6 weeks to give us both some direction.

Report this comment

Featured Broker Partners


Advertisement