Q3 2024 Fortune Brands Innovations Inc Earnings Call Transcript
Key Points
- Fortune Brands Innovations Inc (FBIN) reported strong margin performance with an operating margin of 18.7%, up 130 basis points from the previous year.
- The company's digital products portfolio saw significant growth, with retail and e-commerce point of sale performance up 80% compared to the third quarter of 2023.
- FBIN has signed seven insurance contracts for its Flow smart water monitor, creating a potential sales pipeline of over $160 million.
- The company continues to streamline its operating model, reducing SG&A expenses and focusing on higher-margin opportunities.
- FBIN's luxury business, including the integration of Tec into the House of Rohl, is progressing well with positive feedback from showrooms.
- Net sales for the quarter were $1.2 billion, down 8%, with organic sales excluding China down 5%.
- The Chinese market remains challenging, with sales down more than 40% due to cautious consumer behavior and a soft real estate market.
- The company faced destocking in the wholesale decking channel, leading to a more than 30% decrease in decking sales.
- FBIN's security segment experienced a 14% decline in sales, impacted by market softness and competition from lower-quality import brands.
- The company revised its full-year guidance downward, citing a choppy demand market and short-term impacts from recent hurricanes.
Good day. Ladies and gentlemen, my name is Morgan and I will be your conference operator today. I'd like to welcome you to the Fortune Brands third quarter, 2024 earnings conference call. All lines have been placed on mute to prevent any background noise following the speaker's remarks. We will open the call for a question and answer session. At this time. I'd like to turn the call over to lee Aavs, Vice President of Investor Relations and Corporate Affairs.
Lee. Please go ahead.
Good afternoon, everyone and welcome to the Fortune Brands Innovations third quarter, 2024 earnings call. Hopefully everyone has had a chance to review the earnings release and our supplemental financials, the earnings release and the audio replay of this call can be found in the investors section of our website. I want to remind everyone that the forward-looking statements we make on the call today, either in our prepared remarks or in the associated question and answer session are based on current
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