Mohawk Industries Stock: Is MHK Underperforming the Consumer Discretionary Sector?

Core Viewpoint - Mohawk Industries, Inc. is experiencing significant stock underperformance amid challenging market conditions, with recent financial results falling short of expectations [3][5][6] Company Overview - Mohawk Industries, Inc. is a leading global flooring manufacturer based in Calhoun, Georgia, specializing in premium carpets, hardwood, laminate, tiles, and stone products for both residential and commercial markets [1] - The company has a market capitalization of $6.82 billion, categorizing it as a mid-cap stock [2] Stock Performance - Mohawk's shares reached a 52-week high of $143.13 in September but have since declined by 23.7%, underperforming the broader market and its sector [3] - Over the past three months, the stock has decreased by 16.8%, while the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) has seen only marginal declines [3] - In the last 52 weeks, Mohawk's stock has dropped by 12.4%, contrasting with a 10.9% increase over the past six months [4] Financial Results - In the third quarter, Mohawk reported net sales of $2.76 billion, a modest year-over-year growth of 1.4%, surpassing Wall Street's expectation of $2.73 billion [5] - The company's earnings per share (EPS) fell by 7.9% year-over-year to $2.67, missing the anticipated $2.68, leading to a 7% intraday stock drop following the announcement [6] - Comparatively, another furnishings firm, Interface, Inc. (TILE), has shown a 10.2% increase over the past 52 weeks and a 41% increase over the past six months, highlighting Mohawk's underperformance [6]