Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Steelcase (NYSE:SCS) and the best and worst performers in the office & commercial furniture industry.
The sector faces a tepid outlook as workplace dynamics continue to evolve. Hybrid work means that enterprise demand for office furniture is lower. Consumer demand for the same products likely will not offset the loss from enterprises, as individual workers tend to have less space and need for the sector's wares. The Trump administration also possesses a high willingness to impose tariffs on key partners, which could result in retaliatory actions, all of which could pressure those selling furniture that may feature components or labor from overseas. Lastly, the COVID-19 pandemic showed that there is always a risk that something disrupts supply chains, and companies need contingency plans for this.
The 4 office & commercial furniture stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.9% while next quarter’s revenue guidance was 0.9% above.
Luckily, office & commercial furniture stocks have performed well with share prices up 19.4% on average since the latest earnings results.
Slowest Q2: Steelcase (NYSE:SCS)
Founded in 1912 when metal office furniture was replacing wooden alternatives, Steelcase (NYSE:SCS) is a global office furniture manufacturer that designs and produces workplace solutions including desks, chairs, architectural products, and services.
Steelcase reported revenues of $779 million, up 7.1% year on year. This print exceeded analysts’ expectations by 2.5%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ EPS guidance for next quarter estimates.
“Our first quarter results were a great start to the year,” said Sara Armbruster, president and CEO.
Steelcase delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 54.8% since reporting and currently trades at $16.46.
Is now the time to buy Steelcase? Access our full analysis of the earnings results here, it’s free.
Best Q2: HNI (NYSE:HNI)
With roots dating back to 1944 and a significant acquisition of Kimball International in 2023, HNI (NYSE:HNI) manufactures and sells office furniture systems, seating, and storage solutions, as well as residential fireplaces and heating products.
HNI reported revenues of $667.1 million, up 7% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.9% since reporting. It currently trades at $45.25.
Is now the time to buy HNI? Access our full analysis of the earnings results here, it’s free.
Interface (NASDAQ:TILE)
Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ:TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.
Interface reported revenues of $375.5 million, up 8.3% year on year, exceeding analysts’ expectations by 4.6%. Its results were still good as it also locked in an impressive beat of analysts’ EPS estimates and full-year revenue guidance topping analysts’ expectations.
Interestingly, the stock is up 26% since the results and currently trades at $25.99.
Read our full analysis of Interface’s results here.
MillerKnoll (NASDAQ:MLKN)
Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.
MillerKnoll reported revenues of $961.8 million, up 8.2% year on year. This print beat analysts’ expectations by 5.3%. Overall, it was a stunning quarter as it also put up an impressive beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
MillerKnoll achieved the biggest analyst estimates beat among its peers. The stock is up 10.9% since reporting and currently trades at $19.57.
Read our full, actionable report on MillerKnoll here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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