Nov 16, 2022
Inventory Drawdowns Squeeze Trex Sales
Trex Company, Inc. had consolidated sales of $188 million for the third quarter of 2022, a decrease from consolidated net sales of $336 million in the third quarter of 2021. Residential net sales were $178 million compared to $319 million in the prior-year period, due to a decline in volume. Consolidated gross profit as a percentage of net sales was 24.5 per cent in the third quarter compared to 38.2 per cent in the year-ago quarter. This decrease is primarily due to reduced production at Trex residential resulting from inventory drawdowns by distribution. Net income for the quarter was $14 million, down from $74 million in the year-ago period and earnings before taxes were $31 million with a margin of 16.4 per cent.
Sign up for our Daily News Alerts to receive relevant industry news, articles, and previews for our next issue of Home Improvement Retailing. Delivered directly to your inbox. Subscribe here.