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Breaking Flooring News

NAFCD Distributors Report Q2 Sales Decline

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August 20, 2020

The North American Association of Floor Covering Distributors (NAFCD) recently released the results of its NAFCD Quarterly Sales Trend Survey for the second quarter of 2020. The research and benchmarking tool collects data from industry distributors on sales results from the prior quarter along with forecasts for the upcoming quarter. Profitability trends are also tracked and compared to the prior quarter results and year-over-year comparable results. Additionally, the survey collects insights on a rotating number of relevant subjects, including the impact of COVID-19 on its distribution businesses.  

A sampling of highlights from the Q2 report include:

  • Q2 sales growth was down year-over-year by 11.7% during the quarter
  • Q3 forecasts are 15.4 points higher than Q2 results 
  • Full year 2020 forecasts are now up 10.3 points from Q1's estimates
  • Negative sales impact due to COVID-19 has eased since Q1
  • 18% of distributors have had retailers/showrooms that they distribute to close in Q2 (versus 48% in Q1)
  • Warehouses/distribution centers are now 100% fully functional and able to fulfill orders 
  • 76% of distributors are still seeing issues with product delivery and sourcing 
  • 100% of distributors had orders cancelled in the quarter due to COVID-19

"Our distributor members have weathered the worst of the storm and are now seeing their businesses continue to grow each month," commented Kevin Gammonley, NAFCD executive vice president. "The negative impact of the shutdown has not been as severe as initially feared."

For more information on the NAFCD Quarterly Sales Trend Survey, visit www.nafcd.org.

KEYWORDS: Coronavirus distribution financial insights market trends North American Association of Floor Covering Distributors (NAFCD)

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