What happened

Shares of Interface, Inc. (NASDAQ:TILE) fell as much as 13.2% in trading Thursday after reporting of first-quarter earnings. At 11:15 a.m. EDT, shares were still down 10.7% in volatile trading.

So what

Revenue was up 24% versus a year ago to $297.7 million on the addition of Nora to operations. On an organic basis, revenue was up 2% in the quarter. However, this fell short of the $303.5 million estimate that Wall Street analysts had set for the company.

Multicolored carpet tiles.

Image source: Getty Images.

Net income was $7 million, down from $15 million a year ago, or $0.12 per share. Adjusted for one-time items, earnings were $0.14 per share, beating analyst estimates by $0.03. The bottom-line beat wasn't enough to save the stock from falling today, which may be because management said organic sales growth for the year would be just 2% to 4%.

Now what

There are plenty of signs that growth is beginning to slow in the economy, and carpet tiles are just one of the products being impacted. Companies are putting off purchases or upgrades, and that's slowing sales growth for Interface. Adjusted earnings may be holding up relatively well, but with shares trading at 18 times trailing earnings, the stock is still fairly expensive considering how little growth is expected this year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.