Mohawk Industries, Inc. (NYSE:MHK) Q4 2023 Earnings Call Transcript February 9, 2024 11:00 AM ET

Company Participants

James Brunk - CFO

Jeff Lorberbaum - Chairman and CEO

Chris Wellborn - President and COO

Conference Call Participants

Susan Maklari - Goldman Sachs

Phil Ng - Jefferies

Eric Bouchard - Cleveland Research

Stephen Kim - Evercore

Timothy Wojs - Baird

Keith Hughes - Truist

Andrew Azzi - JPMorgan

Joe Ahlersmeyer - Deutsche Bank

John Lovallo - UBS

Laura Champine - Loop Capital

Matthew Bouley - Barclays

Kathryn Thompson - Thompson Research Group

Adam Baumgarten - Zelman

Rafe Jadrosich - Bank of America

Operator

Good day, and welcome to the Mohawk Industries Fourth Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the conference over to James Brunk. Please go ahead, sir.

James Brunk

Thank you, Rocco. Good morning, everyone, and welcome to Mohawk Industries quarterly investor call. Joining me on the call are Jeff Lorberbaum, Chairman and Chief Executive Officer, and Chris Wellborn, President and Chief Operating Officer. Today, we will update you on the Company's fourth quarter and full year performance and provide guidance for the first quarter of 2024.

I'd like to remind everyone that our press release and statements that we make during this call may include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties, including but not limited to, those set forth in our press release and our periodic filings with the Securities and Exchange Commission. This call may include discussion of non-GAAP numbers. For a reconciliation of any non-GAAP to GAAP amounts, please refer to our Form 8-K and press release in the Investors section of our website.

I'll now turn over the call to Jeff for his opening remarks. Jeff?

Jeff Lorberbaum

Thanks, Jim. Our fourth quarter results were ahead of our expectations, with net sales for the quarter of approximately $2.6 billion, down 1.4% as reported or 4.1% on a constant and legacy basis. Lower demand in residential remodeling and new construction continued to impact our results. Our adjusted EPS for the quarter was $1.96, with benefits from cost containment, productivity and lower input costs. Pricing and product mix declined offset by lower raw material and energy costs during the quarter. Foreign exchange had an impact of approximately $22 million on operating income, or $0.27 on EPS.