WINCHESTER, VA - American Woodmark Corporation net sales rose 18 percent to $256.3 million second quarter, pacing ahead of first quarter. For the year so far, American Woodmarket sales are up 13 percent to $487.5 million in fiscal year 2016.
Sales improved across all its channels - home improvement retailers, builders and cabinet dealers. Net income was $18.2 million for the period, more than double the $7.7 million from last year. American Woodmark's board will spend some of those earnings on a stock repurchase program of up to $20 million.
Sales of cabinetry for remodeling increased 17% during the second quarter, American Woodmark said in its SEC filing.
"Our Waypoint brand represented approximately 9% of our overall sales and grew by 40% during the second quarter and more than 30% during the first half of fiscal 2016. . . Management believes that the company has improved market share within the dealer channel while maintaining market share within big box retailers. However, we understand big box home improvement retailers have lost market share to other channels, primarily independent dealers due to the more affluent nature of their customer base.
Regarding new construction markets, American Woodmark says it believes that fluctuations in single-family housing starts are the best indicator of cabinet activity. Assuming a sixty to ninety day lag between housing starts and the installation of cabinetry, single-family housing starts rose by more than 15% during the second quarter of the Company’s fiscal 2016 over the comparable prior year period.
Sales in the new construction channel increased by more than 18% in both the second quarter and first half of fiscal 2016 when compared with the same periods of fiscal 2015. The Company believes it continued to over index the market due to share penetration with our builder partners and the health of the markets where we concentrate our business.
American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, major builders and through a network of independent distributors. The Company presently operates nine manufacturing facilities and seven service centers across the country.