Looking back on office & commercial furniture stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including HNI (NYSE: HNI) and its peers.

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8% since the latest earnings results.

Weakest Q3: 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 $683.8 million, up 1.7% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a slower quarter for the company with a slight miss of analysts’ revenue estimates.

“Our third quarter performance demonstrates the strength of our strategies and our ability to manage through varying macroeconomic conditions and daily uncertainty, while remaining focused on investing for the future. We expect strong results to continue, driven by our margin expansion efforts and continued volume growth,” stated Jeff Lorenger, Chairman, President, and Chief Executive Officer.

HNI delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 9% since reporting and currently trades at $40.90.

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

Best Q3: 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 $897.1 million, up 4.8% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a beat of analysts’ EPS and revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.7% since reporting. It currently trades at $16.07.

Is now the time to buy Steelcase? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $955.7 million, up 10.9% year on year, exceeding analysts’ expectations by 4.9%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a beat of analysts’ EPS and revenue estimates.

As expected, the stock is down 19.7% since the results and currently trades at $15.27.

Read our full analysis of MillerKnoll’s results here.

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 $364.5 million, up 5.9% year on year. This print topped analysts’ expectations by 2%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $26.77.

Read our full, actionable report on Interface here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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