HNI Corporation Reports 10.7% Increase in Net Sales

By Tamara Parker • Thursday, July 25 15:21 • Permanent Link

HNI Corporation's second quarter financial results for 2024 have shown significant growth and positive performance across various key metrics. The company reported a 10.7% increase in net sales to $623.7 million compared to the same period last year.

In terms of earnings per share (EPS), the GAAP EPS for the second quarter was $0.75, while the non-GAAP EPS reached a record high of $0.79, marking a substantial 44% year-over-year increase.

Operating margins in the workplace furnishings segment expanded by 750 basis points (bps) on a GAAP basis and 370 bps on a non-GAAP basis year-over-year, demonstrating strong operational efficiency.

Looking ahead, the company is expecting a return to net sales growth in both the workplace furnishings and residential building products segments during the second half of 2024.

The outlook for 2024 remains optimistic, with expectations of delivering strong EPS growth and reaching an all-time high. Additionally, the company anticipates continued elevated earnings growth visibility beyond 2024, driven by ongoing initiatives and synergies.

The impact of the Kimball International acquisition has been notable, contributing to improved gross profit margins and operating income. The acquisition has also been a key factor in driving the strong earnings growth in the workplace furnishings segment.

In the workplace furnishings segment, net sales increased by 16.3% to $480.2 million, with operating income reaching $54.3 million, marking a significant 242% increase over the same period last year. The operating margin for this segment improved by 750 bps on a GAAP basis and 370 bps on a non-GAAP basis year-over-year.

Residential building products saw a 4.6% decrease in net sales, amounting to $143.5 million. However, the segment's operating income increased by 26.9% to $19.8 million, and the operating profit margin expanded by 350 bps year-over-year.

The company's outlook for the second half of 2024 includes expectations of continued margin expansion in both the workplace furnishings and residential building products segments.

Today the company's shares have moved 10.3% to a price of $53.93. For more information, read the company's full 8-K submission here.

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