GRAND RAPIDS, Mich. – Despite registering a loss in its first quarter, Steelcase Inc. reported stronger than expected incoming orders and order fullfiment.
"We're pleased with our revenue growth of 33 percent, 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, and our EMEA segment has continued to deliver strong growth for the past five quarters."
The company said it plans continue with the design strategy of products for the hybrid work market.
“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."
Steelcase reported June 22 that it achieved first quarter revenue of $740.7 million, a net loss of $11.4 million. In the prior year, Steelcase reported revenue of $556.6 million and a net loss of $28.1 million.
The year-over-year improvement in operating results was driven by the benefits of higher revenue, partially offset by lower gross margin. The current year included $4.2 million of restructuring costs in the Americas.
Inflation is expected to be a factor in the second quarter and beyond.
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