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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Q2 Earnings Highlights: Interface (NASDAQ:TILE) Vs The Rest Of The Office & Commercial Furniture Stocks

TILE Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how office & commercial furniture stocks fared in Q2, starting with Interface (NASDAQ: TILE).

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 very strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.9% while next quarter’s revenue guidance was 0.7% above.

Luckily, office & commercial furniture stocks have performed well with share prices up 17.8% 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 $375.5 million, up 8.3% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year revenue guidance topping analysts’ expectations.

“We delivered strong second quarter results ahead of our expectations with currency-neutral net sales growth of 7% and significantly expanded profitability. We continued to see strong momentum and market share gains in the Americas with currency-neutral net sales growth of 11% driven by our combined selling teams and expanded product offerings,” commented Laurel Hurd, CEO of Interface.

Interface Total Revenue

Interface achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 24.6% since reporting and currently trades at $25.71.

Is now the time to buy Interface? Access our full analysis of the earnings results here, it’s free.

Best Q2: 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 $667.1 million, up 7% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates.

HNI Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16% since reporting. It currently trades at $44.14.

Is now the time to buy HNI? Access our full analysis of the earnings results here, it’s free.

Slowest Q2: 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 $779 million, up 7.1% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS guidance for next quarter estimates.

Steelcase delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 50.6% since the results and currently trades at $16.01.

Read our full analysis of Steelcase’s results here.

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 $961.8 million, up 8.2% year on year. This print beat analysts’ expectations by 5.3%. It was a stunning quarter as it also logged a solid beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

MillerKnoll pulled off the biggest analyst estimates beat among its peers. The stock is up 12.1% since reporting and currently trades at $19.78.

Read our full, actionable report on MillerKnoll here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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