Shares of HNI Corp. (HNI) plunged about eleven percent in extended trading hours after the Muscatine, Iowa-based officer furniture maker lowered its third-quarter financial outlook to reflect the soft demand for its furniture amidst the ongoing uncertainty in the economy.
HNI, in a statement, said that order patterns in both the supplies-driven and contract businesses have recently slowed as a result of broader macroeconomic concerns. HNI noted that the extreme summer heat curbed production during the peak season for office furniture.
The company now expects third-quarter earnings to be similar to the prior year period when it was $0.55 per share. The company had previously expected earnings of $0.65 to $0.70 per share for the quarter. Analysts polled by Thomson Reuters currently expect earnings of $0.67 per share for the third-quarter. Analysts' estimates typically exclude special items.
HNI also lowered its third-quarter sales growth guidance to a range of 7 to 10 percent, from the prior estimate of 11 to 14 percent. Analysts currently expect revenues of $567.58 million for the third-quarter.
Chief Executive Stan Askren said, "Economic uncertainty appears to be constraining the near-term growth momentum of office furniture. We remain confident in our strategies and will continue to closely monitor our markets, aggressively manage operating expenses, and invest in long-term growth."
The company is scheduled to release its third quarter earnings on October 17, 2012.
HNI closed Monday's trading at $30.69, down $0.99 or 3.12%, on a volume of 0.2 million shares. The stock further lost $3.22 or 10.49% in after-hours trade.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.