Retail

Acuity Brands shares plunge after disappointing second-quarter results

Acuity Brands
Luke Sharrett | Bloomberg | Getty Images

Stock for Acuity brands fell more than 14 percent after the company announced disappointing second quarter earnings.

The Atlanta-based company said adjusted earnings for its fiscal second quarter totaled $1.77 per share, below a consensus estimate of $1.82. Sales also missed expectations at $804.7 million.

The company largely blamed weaker-than-anticipated demand in the North American market, with continued weakness in smaller, short-cycle projects.

"Like last quarter, we carried a higher manufacturing cost structure into the quarter in anticipation of servicing a greater level of demand than occurred," said Acuity Brands President and CEO Vernon Nagel, in a statement.

The company also attributed the decline to year-over-year sales down in certain international markets like Europe and Mexico.

Acuity Brands said it hopes to capitalize on what they see as a forecast return to growth in the North American lighting market during fiscal year 2018.

Acuity manufactures and distributes lighting fixtures and control systems, including sub-brands Holophane, Lithonia, and Peerless.

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