Armstrong Flooring reported fourth quarter sales rose 1.8%, while net sales for the full year, ending December 31, 2020, declined 6.6%, primarily due to the effects of COVID-19 on business.
Armstrong President and CEO Michel Vermette commented:
“I’m proud of the resilience our employees showed throughout the year while executing our business transformation. Our progress was evident in our fourth quarter results, which were largely in line with our expectations as we further invested in the multi-pronged transformation and modernization of our business.
“Looking forward to 2021, macro trends further support Armstrong Flooring’s internal efforts. Residential housing construction remains positive for Armstrong Flooring, with this end market continuing to grow in importance, representing 40% of 2020 sales compared to 35% historically. Economic indicators for single-family residential construction and renovation are all pointing towards robust levels of activity to continue in 2021. We believe these residential tailwinds will support Armstrong Flooring’s strong brand, the timing of our direct sales efforts to select independent retailers, growing presence in big box retailers, and meaningfully enhanced sales efforts with our valued flooring distribution network. Commercial activity continues to gain momentum with sequential improvement in demand trending in the right direction since mid-year 2020. These factors combined with the significant steps that we are taking to structurally transform our business give us the confidence in our transformation plans.”
During 2020, the company took the following steps towards its multi-year transformation plan introduced in March 2020.
Expanding customer reach
Expanded direct sales teams to service key independent retailers, commercial national accounts, and large flooring contractors
Added teams to address key addressable markets, such as hospitality
Simplifying product offerings and operations
Reduced SKU count by approximately 30% in 2020
Consolidated U.S. manufacturing facilities and improved efficiencies
Announced the relocation of corporate headquarters, effective summer 2021, with estimated cost savings of approximately 60% of current corporate lease expense
Strengthening core capabilities
Launched new branding, rolled out innovative in-store displays and accelerated new product introductions
Introduced Quick Ship program to service accelerated customer project timelines
Invested in product innovation with a focus on U.S. based manufacturing
Augmented our logistics capabilities to align with customer expectations, including the addition of a vice president of logistics and other investments in process and personnel
For more information, visit armstrongflooring.com.