Interface Cuts 2026 Sales Outlook as Third-Quarter Profit Falls

Interface Inc. reduced its fiscal 2026 sales forecast Nov. 6 after weaker conditions in Europe, even as third-quarter adjusted earnings per share rose and quarterly sales edged higher.

The company lowered its full-year net sales range to $1.440 billion to $1.455 billion from $1.455 billion to $1.485 billion. It kept its full-year earnings guidance unchanged, but reduced its adjusted gross margin forecast to 40.4% from 40.6%. Its adjusted selling, general and administrative expense outlook fell to $387 million from $395 million.

For the quarter ended Oct. 4, net sales were $366.7 million, up 0.6% from $364.5 million a year earlier. Sales excluding currency effects increased 0.4%.

GAAP net income declined to $39.2 million from $46.1 million. Diluted GAAP earnings per share fell to 67 cents from 78 cents, while adjusted diluted earnings per share rose to 68 cents from 61 cents.

Adjusted gross margin was 40.6%, up 103 basis points from a year earlier. Interface is a global flooring company whose products include carpet tile, luxury vinyl tile, rubber flooring and area rugs.

“Our backlog is solid, our balance sheet is healthy,” Chief Financial Officer Bruce Hausmann said.