GRAND RAPIDS, Mich. – Contract and office furniture giant Steelcase reported first quarter revenue of $740.7 million, a loss of $11.4 million over last quarter. Nevertheless, the performance was better than expected and well above last year’s first quarter revenue of $556 million.
“We’re pleased with our revenue growth of 33 percent (over last year), which was better than expected due to stronger incoming orders and improved order fulfillment from the adjustments we’ve made to mitigate the impact of supply chain disruptions,” said Sara Armbruster, president and CEO. “In each of the most recent eight months of reported data, our year-over-year order growth in the Americas has outpaced our industry.
The company said inflationary pressures are continuing to mount, forcing price increases.
“Inflationary pressures continued to grow this quarter across a number of commodities, and we responded by announcing our fifth price increase over the past 16 months, to be effective in July,” said Dave Sylvester, senior vice president and CFO. “In addition, we recently announced a surcharge in the Americas in response to rapidly increasing costs of petroleum-based products, freight and delivery, and we have been slowing incremental spending to help offset some of the cost-price timing lag.”
Steelcase predicts seasonal improvement for the second quarter, but also continued inflation and supply chain challenges.
“We continue to drive our strategy to lead the hybrid work transformation and prioritize investments to support our key growth adjacencies,” said Armbruster. “At the same time, we remain committed to achieving our fiscal 2023 financial targets and are implementing necessary pricing actions and other measures to mitigate the impacts of the escalating inflationary pressures.”
Robert Dalheim, senior editor of case goods and global sourcing, has been writing about the woodworking industry and business news since 2015. He is a graduate of Northern Illinois University with degrees in journalism and political science. Contact Bobby at rdalheim@furnituretoday.com or by calling (336) 605-3815.
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