Interface Inc. Reports Mixed Q1 Results Amidst Positive Sales Growth
Interface Inc., a leading commercial flooring company, recently disclosed its financial performance for the first quarter of 2025. Despite a 2.6% increase in net sales, the company experienced an 8.3% decline in earnings compared to the previous year. The quarterly earnings amounted to $13 million, down from $14.2 million, with earnings per share at $0.22, lower than the $0.24 reported last year. On an adjusted basis, earnings per share were $0.25, slightly up from $0.24 in the prior year. Analysts had anticipated earnings of $0.21 per share, excluding special items.
Net sales for the quarter rose to $297.4 million from $289.7 million the previous year, surpassing Wall Street’s expectation of $297.11 million. Looking ahead, Interface projects net sales for the second quarter to be in the range of $355 to $365 million, with analysts estimating $354.37 million. For fiscal 2025, the company has revised its net sales forecast to between $1.340 and $1.365 billion, up from the previous projection of $1.315 to $1.365 billion. Analysts estimate sales to be around $1.34 billion.
In a statement, Laurel Hurd, CEO of Interface, highlighted the company’s strong start to the year, noting a 4% currency-neutral net sales growth year-over-year. The Americas region saw a 6% increase in net sales and a 10% rise in currency-neutral orders, although this was partially offset by a softer macroeconomic environment in the EMEA, Africa, and Asia (EAAA) regions. Global billings in Healthcare and Education grew double digits, underscoring the effectiveness of Interface’s One Interface strategy, which aims to diversify and strengthen the business.
The company’s focus on sustainability and innovation continues to drive its market position, with recent strategic appointments aimed at optimizing product category management. Despite the earnings decline, Interface’s revised sales outlook and strategic initiatives suggest a positive trajectory for the remainder of the fiscal year.