Steelcase Forecasts Decline in Third-Quarter Revenue

The furniture company Steelcase is anticipating a decrease in revenue for the third quarter, citing a reduction in backlog compared to the previous year. The revenue is projected to range between $780 million and $805 million, representing a 3% to 6% decline compared to the prior year's third quarter revenue of $826.9 million.

Steelcase, based in Grand Rapids, Michigan, reported a backlog of customer orders of approximately $700 million at the end of the second quarter. This backlog is 26% lower than the previous year, which can be attributed to the challenges posed by supply chain disruptions and extended delivery timeframes.

In terms of earnings, Steelcase expects to achieve between 19 cents and 23 cents per share, with adjusted earnings per share ranging from 23 cents to 27 cents for the third quarter. Looking ahead to fiscal year 2024, the company foresees a modest organic revenue decline compared to fiscal year 2023, along with adjusted earnings per share estimated to be between 80 cents and 90 cents.

Chief Executive Sara Armbruster expressed optimism about the company's future, stating, "More companies are issuing return to office mandates, and we're optimistic that our demand levels will improve as customers seek our help to evolve their workplaces."