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May 28, 2021
Steelcase Q1 2022 Earnings Report
Steelcase reported better-than-expected results in the first quarter of fiscal year 2022, with revenue increasing by 15 percent and operating loss improving.
Key Takeaways
Steelcase reported first quarter revenue of $556.6 million and a net loss of $28.1 million, or $0.24 per share. Revenue increased 15 percent compared to the prior year, driven by broad-based growth across all segments.
Revenue increased 15 percent compared to the prior year, or 9 percent on an organic basis.
Orders grew 11 percent compared to the prior year, and 25 percent sequentially compared to the fourth quarter of fiscal 2021.
Operating loss improved by $20.5 million compared to the prior year.
Gross margin increased by 240 basis points compared to the prior year.
Steelcase
Steelcase
Forward Guidance
The company expects second quarter fiscal 2022 revenue to be in the range of $750 to $780 million and earnings per share of between $0.25 to $0.30.
Positive Outlook
- Strong sequential revenue growth is projected for the second quarter.
- The company expects to be profitable for the first half of the fiscal year.
- Customer visits, mock-ups, and requests for proposals are increasing.
- Customers are restarting previously planned projects.
- Investments are expected to support strong growth in the second half of the fiscal year.
Challenges Ahead
- Projected inflation, net of pricing benefits, of approximately $14 million as compared to the prior year.
- The projected revenue translates to an expected organic decline of 8 to 11 percent compared to the second quarter of fiscal 2021.
- Extraordinary inflationary pressures in the steel market.
- Increasing costs of logistics.
- Increasing costs of many other commodities.