Interface Works on a Turnaround, One Tile at a Time

Turnarounds are like tile carpeting, in that you have to put them together one piece at a time. Interface (NASDAQ: TILE) reported fresh financials after the market closed on Oct. 25 and once again confirmed that its slow yet steady turnaround is still intact.

Net sales rose 3.7% to $257.4 million in the third quarter for the flooring specialist that specializes in modular carpet products. It may not seem like much, but it's been more than two years to find the last time Interface's top line was growing faster. Interface grew its net sales by just 1.4% in its previous quarter, and that ended a streak of six consecutive quarters of year-over-year revenue declines.

Interface experienced improvement across all of its regions. Organic sales, adjusted for foreign exchange fluctuations and its decision to exit its FLOR retail business, grew at a 3.9% clip. Organic orders rose at an even better 6.5% rate, suggesting continuing growth. Once again we find Interface crediting its improving performance to growth in its core carpet-tile business and the recent launch of its luxury vinyl tile modular resilient flooring business.

Source: Fool.com