American Woodmark says Big Box Dealers Losing Cabinetry Market Share
American_woodmark-Cabinetry.jpg

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.

Have something to say? Share your thoughts with us in the comments below.

Profile picture for user billesler
About the author
Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.