HNI Corporation, a leading workplace furnishings and residential building products manufacturer, has recently released its 10-Q report. The company operates through two segments: Workplace Furnishings and Residential Building Products, offering a wide range of products under various brands.
In the second quarter of 2024, HNI reported consolidated net sales of $623.7 million, marking a 10.7% increase compared to the prior-year quarter. This growth was primarily driven by a 16.3% increase in net sales in the Workplace Furnishings segment, partially offset by a 4.6% decrease in net sales in the Residential Building Products segment. The acquisition of Kimball International in the second quarter of 2023 increased year-over-year sales by $80.5 million.
Net income attributable to HNI Corporation in the second quarter of 2024 was $36.0 million, a significant improvement compared to a net loss of $12.8 million in the second quarter of 2023. The company's operating margin also saw a substantial increase, reaching 8.6% in the second quarter of 2024, compared to a loss of 0.6% in the same quarter last year.
For the first six months of 2024, HNI reported consolidated net sales of $1,211.7 million, representing a 16.2% increase compared to the same period last year. The company's net income attributable to HNI Corporation for the first six months of 2024 was $53.7 million, a significant improvement compared to a net loss of $11.3 million in the first six months of 2023.
In the Workplace Furnishings segment, net sales for the second quarter of 2024 increased by 16.3% compared to the same quarter last year, driven by the acquisition of Kimball International. Operating income as a percentage of net sales in this segment improved by 750 basis points in the second quarter of 2024 compared to the same period in 2023.
Conversely, in the Residential Building Products segment, net sales for the second quarter of 2024 decreased by 4.6% compared to the same quarter last year, primarily due to lower volume in the existing home channel. However, operating income as a percentage of net sales in this segment increased by 350 basis points in the second quarter of 2024 compared to the same quarter last year.
In terms of liquidity and capital resources, HNI Corporation's cash, cash equivalents, and short-term investments totaled $23.8 million as of June 29, 2024.
These numbers reflect HNI Corporation's performance and financial position as outlined in its recent 10-Q report. Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $54.8. Check out the company's full 10-Q submission here.
