PGT Innovations, Inc.’s (PGTI - Free Report) brand CGI Commercial has launched two new professional-grade non-impact products — SE3450 Storefront Entry Door and SS3400 Storefront Window Wall System.
The two non-impact, insulated glass products are aligned with various customer needs and are meant to deliver superior quality. This pre-glazed door and window wall’s key features include strong aluminum construction, noise-reducing insulated glass, large size options, hardware and finish customization, along with a five-year structural integrity warranty.
The SE3450 Storefront Entry Door, which is available as a single or double outswing door and includes a standard 3-point locking system, extends up to 12-feet tall with transoms. The SS3400 Storefront Window Wall, which comes in sizes up to 12-feet high, features narrow sightlines to increase visibility without compromising structural integrity. Notably, the commercial entry door is designed to be used in tandem with the SS3400 Storefront Window Wall system.
Product Innovation to Drive Growth
PGT Innovations — the nation’s leading impact-resistant windows and doors manufacturer and supplier — banks on innovation and expansion to drive growth. The company is dedicated to design and engineer new and innovative products that transform the way people live. This helps it generate higher revenues. Within the window and door industry, PGT Innovations has exclusive rights to use the hardware on impact-resistant products.
In first-quarter 2020, the company’s net sales increased 27% year over year backed by strong organic growth of 18% in the Southeast business unit and 14% in the Western business unit, inclusive of an extra selling week in first-quarter 2020 compared with the prior year. Additionally, the acquisition of NewSouth Window Solutions contributed to the growth.
Coming to price performance, its shares have gained 22.6% in the past month compared with the industry’s 18% growth. The company remains confident to deliver improved results going forward, backed by an innovative products portfolio and acquisitions.
However, owing to the challenging economic condition arising from the coronavirus pandemic, it has withdrawn its 2020 guidance. The company projects to generate lower sales in the second quarter mainly owing to a decline in orders, which began in April, on account of the COVID-19 outbreak. Notably, its Florida markets witnessed order entry declines of 10% year over year in April. California, Texas and Nevada saw softer order patterns, down 20-30% year over year for April and more than 40% sequentially.
Nonetheless, the company has taken initiatives aimed at preserving cash such as reduction in discretionary costs and carefully prioritizing capital expenditures, while continuing to deliver the products needed by customers. We believe the recent move will help PGT Innovations to secure its competitive advantage over peers.
PGT Innovations — which shares space with Armstrong World Industries, Inc. (AWI - Free Report) , Arcosa, Inc. (ACA - Free Report) and Construction Partners, Inc. (ROAD - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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