MUSCATINE — HNI Corp. announced sales of $514.5 million and net income of $13.8 million for the second quarter, ended July 1.
In its earnings news release, HNI said GAAP net income per diluted share was 31 cents compared to 64 cents in the prior year. Non-GAAP net income per diluted share was 42 cents compared to 68 cents in the prior year.
"We continue to manage through a dynamic environment in our office furniture businesses," Stan Askren, HNI chairman, president and CEO, said in the release. "Office furniture sales were negatively impacted by shipment timing and a greater than anticipated decline in the wholesale channel."
He added that the company is responding "to the changing environment by investing in new products and selling capabilities and advancing initiatives around quick ship, direct fulfillment."
Second quarter highlights include:
• Consolidated net sales decreased $22.0 million, or 4.1 percent, from the prior year quarter to $514.5 million.
• Office furniture net sales decreased $21.7 million, or 5.1 percent, to $406.4 million.
• Net sales of hearth products decreased $0.4 million, or 0.4 percent, to $108.0 million. Increases in the new construction and retail pellet businesses were offset by a decrease in the retail wood/gas business.
According to Askren, demand is expected to be stronger in the second half of the year. "We are in the midst of multiple transformations positioning our supplies business for long-term success, driving further business simplification, and improving our operational cost structure."
HNI estimates full year non-GAAP earnings per share to range from $2.35 to $2.55, excluding restructuring and transition costs. Full year organic sales are expected to be up 2 to 5 percent. Including the impacts of acquisitions and divestitures, full year sales are expected to be down 2 percent to up 1 percent.