Loading...
•
Jul 01, 2023
HNI Q2 2023 Earnings Report
HNI Corporation reported earnings for the second quarter of fiscal year 2023.
Key Takeaways
HNI Corporation reported sales of $563.5 million and a net loss of $12.8 million. Non-GAAP EPS grew six percent despite a nine percent decline in net sales compared to the prior year.
Grew non-GAAP profit in a challenging demand environment.
Delivered significant profit improvement in Workplace Furnishings.
Kimball International accretion moves significantly higher due to planned exit of Poppin.
Profit support actions in place in Residential Building Products.
HNI
HNI
HNI Revenue by Segment
Revenue by Segment
Workplace Furnishings Revenue
CapyFin.comResidential Building Products Revenue
CapyFin.com Forward Guidance
The Corporation expects second half organic revenue to grow at a rate in the low single-digits for Workplace Furnishings. In Residential Building Products, the Corporation expects year-over-year revenue declines to moderate in the second half due to lower prior-year comparisons, moving past the normalization of trade inventory in the remodel/retrofit channel, and improved trends in new construction.
Positive Outlook
- Continued year-over-year profit and margin improvement in Workplace Furnishings.
- The addition of Kimball International will strengthen our business.
- It better positions us to lead in the evolving workplace environment and provides new opportunities for profit growth.
- The intermediate- to long-term fundamentals of the housing market are strong as the market remains undersupplied.
- Demographic trends will continue to support demand.
Challenges Ahead
- The Corporation expects third quarter 2023 non-GAAP EPS to be modestly below third quarter 2022 levels primarily due to lower volume in Residential Building Products
- Normalization of variable compensation
- The Corporation expects Residential Building Products revenue to decline at a year-over-year rate in the high teens during the second half of 2023 with the fourth quarter declining at a slower rate than the third quarter.
- Prior to the exit, Poppin is expected to generate an operating loss of $3.5 to $4.0 million during the third quarter.
- Prior to the exit, Poppin is expected to generate revenue of $7 to $9 million during the third quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income