US-based Masco Corporation, the parent company of KBB brands such as Bristan and Hansgrohe, has seen a slight decline in its sales for the first quarter of the year, blaming cost increases from “new and broad-reaching tariffs” as a potential cause.
In its latest trading update, Masco reported seeing net sales of $1.801bn (roughly £1,355bn) for the first quarter, down by around 6% compared with its Q1 2024 sales of $1,926bn. In line with this, the company’s year-on-year gross profit has also declined by the same percentage, down to $644m from last year’s $685m.
Masco’s pre-tax profits also fell by around 12%, down from $289m at the end of Q1 2024, to $254m this year.
Looking at the market as a whole, Masco says its North American sales have decreased by 7% year-on-year. However, in more positive news, its international sales reportedly remain flat.
Masco President and CEO, Keith Allman explained: “During the first quarter, we delivered solid adjusted operating profit margin of 16.0 percent and adjusted earnings per share of $0.87, and we returned $196 million to shareholders through dividends and share repurchases.”
Discussing the wider market, Allman said: “We also experienced significant changes in the geopolitical and macroeconomic environment, including the enactment of new and broad-reaching tariffs. Our experienced teams are actively taking steps in an effort to mitigate these increased costs through pricing actions, cost savings initiatives, and sourcing changes, as we have done in the past.”
Allman also said that Masco will not be providing full-year financial guidance at this time, owing to what he refers to as “the uncertainty that persists around how these changes will impact demand, pricing, and product costs across our industry”.
Looking ahead to the future, Allman concluded: “We are focused on responding rapidly to the shifting economic landscape and believe our market leading brands, service levels, and innovative repair and remodel-oriented product portfolio best position Masco to continue to deliver long-term shareholder value.”
In related news, Masco managed to close the 2024 financial year with only a slight 2% decrease in its net sales, despite the generally tumultuous nature of the wider KBB market.
