Why American Woodmark (AMWD) Stock Is Falling Today

What Happened?

Shares of cabinet manufacturing company American Woodmark (NASDAQ:AMWD) fell 3.6% in the pre-market session after the company reported second-quarter results that fell short of analyst expectations on both revenue and earnings. 

The cabinet manufacturer announced net sales of $403 million, a 12.2% decline compared to the same quarter last year, which also missed consensus estimates. Adjusted earnings per share came in at $1.01, below analyst projections and down 46.6% from the $1.89 reported in the prior-year period. The disappointing results were driven by the significant drop in sales. 

Additionally, the company's profitability took a hit, with its gross margin falling by 3.5 percentage points year on year. The operating margin saw an even steeper decline, dropping 5.2 percentage points, which suggested increased pressure from a competitive market and higher input and operating costs. Lastly, AMWD did not provide or update previously issued financial guidance in light of the proposed merger with MasterBrand.

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What Is The Market Telling Us

American Woodmark’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 12 days ago when the stock dropped 3.9% on the news that an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. 

The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.

American Woodmark is down 14.5% since the beginning of the year, and at $67.32 per share, it is trading 34.6% below its 52-week high of $102.94 from November 2024. Investors who bought $1,000 worth of American Woodmark’s shares 5 years ago would now be looking at an investment worth $769.20.

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