✅   BlueLinx: Headwinds In The Housing Market

Finance

In the US, BlueLinx (NYSE:BXC) is one of the top wholesale distributors of building products for residential and commercial building. In FY2023, BXC’s top line contracted due to a combination of price deflation and lower sales volumes, implying that the market conditions have started to normalise. As a result, profitability margins contracted as well. For its most recent 1Q24 results, consolidated net sales declined. On a brighter note, its profitability margins remained robust year-over-year. Looking ahead, the high interest rate environment due to persistent inflation is expected to continue creating headwinds for the housing market. In addition, annual spending for repairs and improvements to homes is expected to decrease.

seekingalpha.com     Jul 08, 2024