HNI share prices drop 22 percent, says low office furniture demand to blame

MUSCATINE, Iowa - Office furniture manufacturing giant HNI Corp.’s stock took a dive, with share prices dropping over 22 percent on advance news of next month's earnings report.

HNI, whose brands include Allsteel, Gunlocke and Hon, now estimates third quarter sales to be down 4 to 7 percent, compared to previous guidance of flat to up 3 percent. HNI Corporation (NYSE: HNI) will announce earnings October 19, and host its quarterly conference call for investors on October 20, 2016.

The company said low office furniture demand, as well as decreased small business confidence and project activity, will dampen its results.

"Sales for the quarter did not develop as expected," said Stan Askren, HNI Corp. chairman, president, and CEO. "Economic uncertainty is weighing on our markets making them more dynamic and difficult to predict than recent periods."

HNI’s share price had climbed over 55 percent over last year. Considered the second largest office furniture manufacturer in the world, HNI's brands also include Lamex, Paoli, Heatilator, Heat & Glo and Quadra-Fire.

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Robert Dalheim

Robert Dalheim is an editor at the Woodworking Network. Along with publishing online news articles, he writes feature stories for the FDMC print publication. He can be reached at [email protected].