Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Interface (NASDAQ:TILE) and its peers.
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 strong Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results.
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 $297.4 million, up 2.6% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
“We delivered a solid start to the year, with currency-neutral net sales growth of 4% year-over-year. Strong momentum continued in the Americas, where net sales grew 6% and currency-neutral orders were up 10%, partially offset by a softer macro environment in EAAA. Global billings in both Healthcare and Education grew double digits demonstrating the power of our strategy that continues to diversify and strengthen our business,” commented Laurel Hurd, CEO of Interface.
Interface scored the fastest revenue growth and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 11.4% since reporting and currently trades at $20.96.
Is now the time to buy Interface? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $599.8 million, up 2% year on year, outperforming analysts’ expectations by 3.3%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates.
HNI pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $47.44.
Is now the time to buy HNI? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: 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 $876.2 million, flat year on year, falling short of analysts’ expectations by 4.6%. It was a disappointing quarter with full-year revenue guidance missing analysts’ expectations.
MillerKnoll delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 4.1% since the results and currently trades at $17.59.
Read our full analysis of MillerKnoll’s results here.
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 $788 million, up 1.7% year on year. This result met analysts’ expectations. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.
The stock is flat since reporting and currently trades at $10.54.
Read our full, actionable report on Steelcase here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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