American Woodmark Corporation reported its financial results for the three-month period ending July 31, 2024, revealing a decline in net sales and profitability compared to the same period in the previous fiscal year. Net sales for the quarter were $459.1 million, a decrease of $39.1 million or 7.9% from $498.3 million in the first quarter of fiscal 2024. This decline was attributed to reduced sales across major distribution channels, particularly in the home center and independent dealer segments, which fell by 16.5% and 13.1%, respectively. In contrast, builder sales saw a modest increase of 3.3%.
Gross profit for the quarter was $92.9 million, down 15.3% from $109.6 million in the prior year, resulting in a gross profit margin of 20.2%, a decrease from 22.0%. The decline in gross profit margin was primarily due to lower sales volumes and increased input costs, although operational efficiencies partially offset these challenges. Operating income also fell to $47.0 million from $49.8 million year-over-year, while net income decreased to $29.6 million, or 6.5% of net sales, compared to $37.9 million, or 7.6% of net sales, in the same period last year.
The company’s cash and cash equivalents increased slightly to $89.3 million as of July 31, 2024, from $87.4 million at the end of April 2024. However, net cash provided by operating activities significantly dropped to $40.8 million from $86.7 million in the prior year. The effective income tax rate rose to 25.0% from 21.9%, primarily due to state income taxes.
In terms of strategic developments, American Woodmark has been actively managing its capital structure. The company has a total long-term debt of $374.9 million as of July 31, 2024, with $206.3 million outstanding on its Term Loan Facility and $163.8 million on its Revolving Facility. The company also initiated a stock repurchase program, authorizing up to $125 million, with $65.4 million remaining available for repurchases as of the reporting date.
Overall, the company anticipates a low single-digit decline in net sales for fiscal 2025, influenced by a softer repair and remodel market, although it expects some offset from increased new construction activity.
About AMERICAN WOODMARK CORP
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