Apogee Enterprises, a Minneapolis-based building-supply company, has announced a decline in sales for its fiscal second quarter. The company attributed this decrease to higher interest rates impacting new construction projects.
Financial Results
During the three months ended Aug. 26, Apogee Enterprises recorded a profit of $33.3 million, or $1.52 per share. This is a decrease from $37.4 million, or $1.68 per share, during the same period last year.
After adjusting for one-time items, the company reported adjusted earnings of $1.36 per share. Analysts surveyed by FactSet had anticipated adjusted earnings of $1.12 per share.
Sales Performance
Apogee Enterprises experienced a 5% decline in sales, amounting to $353.7 million. According to FactSet analysts, sales were expected to reach $371.2 million.
- The Architectural Framing Systems unit witnessed an 8% drop in sales.
- The Architectural Glass business, on the other hand, saw sales increase by nearly 22%.
- The Architectural Services division reported a sales decline of more than 17%.
Margin Improvement
Apogee Enterprises managed to improve its gross margin, which rose to 27% from 22.8% compared to the previous year. The company attributes this improvement to streamlining operations and focusing on more profitable projects.
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