Office furniture giants Steelcase and MillerKnoll in recent earnings releases said that they are anticipating tariff cost losses to be as much as $16 million in the upcoming quarter and plan to offset these costs with price increases.

For Steelcase, first quarter estimates include an assumption of $9 million of higher tariff costs as compared to the prior year. The fiscal 2026 targets reflect pricing actions offsetting the impacts of higher tariffs and related inflationary cost increases,

Steelcase Inc. reported fourth quarter revenue of $788.0 million, net income of $27.6 million. The results included $21.8 million of favorable tax items which increased net income by $13.4 million (net of related variable compensation expense), or $0.11 per share. In the prior year, Steelcase reported revenue of $775.2 million, net income of $21.3 million, or $0.18 per share, and adjusted earnings per share of $0.23.

For fiscal 2025, the company recorded $3.2 billion of revenue, net income of $120.7 million, earnings per share of $1.02 and adjusted earnings per share of $1.12 (including $0.11 related to the tax benefits recorded in the fourth quarter). In fiscal 2024, the company recorded $3.2 billion of revenue, net income of $81.1 million and earnings per share of $0.68 and had adjusted earnings per share of $0.92.

MillerKnoll tariff cost expectation
MillerKnoll revenue expectations in Q1 CY2025, with sales flat year on year at $876.2 million, up 0.4% from $872.3.

The company said that in the quarter leading indicators within its contract businesses are mixed, and overall demand in most geographies was sluggish during the quarter amid uncertainty related to tariff policy and other macroeconomic factors.

MillerKnoll expects tariffs costs to range between $5 million to $7 million before tax, and between $0.05 to $0.07 of net earnings per share. “Importantly, these estimates reflect the latest available information known to us as of the date of this release, including all known active tariffs. Given its fluid nature, as the tariff situation changes, we will provide further updates in future quarters,” said Andi Owen, president and CEO.

BIFMA, the association that represents 175 business and institutional furniture manufacturers, and material/component part suppliers across North America with the majority of members based in the US, with an additional 78 international member companies around the world, says the furniture industry faces significant economic and supply chain challenges with potential tariffs targeting imports from Mexico, Canada, China, and other nations. 

"The proposed tariffs threaten to disrupt well-established trade relationships and supply chains developed within North America creating further disadvantage to US companies against competitors located outside of North America," the association said in its recently released statement on tariffs. 

Furniture prices and material costs across both mass-produced and high-end market segments will increase, potentially raising prices for consumers by amounts proportional to the tariff rates. Such increases will have a negative impact on market demand likely leading to a net job loss particularly challenging for the furniture industry, which is already navigating post-pandemic market conditions. Ripple effects could impact customer industries and adjacent construction industries as new capital investment projects may be reconsidered.