HNI Q2 2021 Earnings Report
Key Takeaways
HNI Corporation announced sales of $510.5 million and net income of $17.4 million for the second quarter ended July 3, 2021. Non-GAAP EPS doubled year-over-year, driven by exceptional performance in Residential Building Products and recovery in Workplace Furnishings.
Non-GAAP EPS doubled vs. prior year due to increased volume and higher productivity.
Residential Building Products revenue grew 51 percent organically, with operating margin expanding 530 basis points.
Workplace Furnishings revenue was up approximately nine percent organically, with non-GAAP operating profit increasing more than 20 percent year-over-year.
The company managed challenges related to labor availability, supply chain capacity, and inflation to deliver strong results.
HNI
HNI
HNI Revenue by Segment
Forward Guidance
The Corporation expects consolidated revenue to grow in the mid-20 percent range compared to the prior-year quarter. Profit growth is expected to accelerate after the third quarter as recent price actions become effective and temporary cost actions taken during the pandemic are anniversaried.
Positive Outlook
- Strong consolidated growth: Revenue to grow in the mid-20 percent range compared to the prior-year quarter.
- Residential Building Products revenue: Growth rates in the mid-to-high 20 percent range compared to the prior-year quarter.
- Workplace Furnishings revenue: Growth rate in the low-to-mid-20 percent range on a year-over-year basis.
- Strong second quarter order trends
- Continued momentum with office re-entry activity
Challenges Ahead
- Headwinds from labor availability and supply chain constraints.
- Cost challenges related to inflationary pressures.
- Increased growth investments.
- Return of costs associated with temporary actions taken in the prior year.
- Impact of strong volume growth to be mostly offset by cost challenges
Revenue & Expenses
Visualization of income flow from segment revenue to net income