Herman Miller Inc. and Steelcase Inc. issued mostly disappointing outlooks and weaker-than-expected quarterly sales, the latest sign of weakening demand for office furniture.
Zeeland, Mich.,-based Herman Miller’s shares fell 11% to $28.70 in recent after-hours trading while Grand Rapids, Mich.,-based Steelcase’s shares were unchanged.
The results come after HNI Corp. cut its guidance for the third quarter and the year after the bell on Monday, citing weaker-than-expected demand for office furniture and hearth products, sending shares in the sector lower on Tuesday. Muscatine, Iowa,-based HNI plans to release its earnings on Oct. 19.
Steelcase shares fell 7.7% on Tuesday and Herman Miller shares dropped 8.5% after the HNI warning. Shares of both Steelcase and Herman Miller were unchanged at the close on Wednesday.
For the current quarter, Herman Miller forecast per-share earnings of 52 cents to 56 cents and revenue of $580 million to $600 million. Analysts polled by Thomson Reuters expected per-share profit of 60 cents and revenue of $601 million.