HNI, parent company of HON office furniture brand, reported improved sales and better than expected results for Q2 2018.
After issuing a profit warning last year due to disappointing sales, the company has seen a stronger performance this quarter as investments made in product, selling, and fulfilment capabilities begin to pay dividends.
Office furniture sales increased 7.8% on an organic basis to $423.9 million, driven by increases in the supplies-driven North American contract and international business. However, this was partially offset by the impact of closing and divesting small office furniture companies, which decreased sales by $13.2 million compared to the same period last year. Meanwhile, adjusted operating profit fell by 18% to $20.9 million.
Overall group sales on an organic basis increased 8.4% to $543.6 million, but adjusted operating profit fell 3.9% to $29.3 million.
The company predicts that full year organic sales will increase 6-8%.
HNI CEO Jeff Lorenger said: “We expect to continue generating top-line growth in the second half of 2018. I like our competitive position and am excited about our opportunities to grow the business. In short term, we are experiencing additional headwinds from increasing input costs and timing related to our cost savings and productivity initiatives.”
Source Link: OPI https://www.opi.net/news/hni-q2-sales-improve/