GRAND RAPIDS, Mich. - Office furniture maker Steelcase Inc . (NYSE:SCS) reported better-than-expected second quarter earnings and raised its full-year guidance, despite revenue coming in slightly below estimates.
Steelcase posted adjusted earnings per share of $0.39 for the second quarter, beating analyst expectations of $0.36. Revenue was $855.8 million, up slightly from $854.6 million a year ago but below the consensus estimate of $867.43 million.
The company saw organic revenue growth of 2% overall, driven by 3% growth in its Americas segment. This was partially offset by a 4% organic decline in the International segment, which Steelcase attributed to continued weakness in China.
"Our business continued to improve this quarter as our adjusted earnings grew 26% and we drove 3% order growth in the Americas," said Sara Armbruster, president and CEO. "Our education business had especially strong results this quarter, which reflected the benefits of our strategy to diversify the customers and markets we serve."
Gross margin improved 130 basis points year-over-year to 34.5%, which the company said was driven by favorable business mix and benefits from operational performance and cost reduction initiatives.
For the third quarter, Steelcase expects revenue of $785-810 million and adjusted EPS of $0.21-$0.25. The company also raised its full-year adjusted EPS outlook, saying it now has confidence in potentially achieving the higher end of its previous $0.85-$1.00 range.
"We are pleased with our results through the first half of fiscal 2025 in which our adjusted earnings per share increased by nearly 40% compared to the prior year," Armbruster added.
Steelcase shares were unchanged in after-hours trading following the earnings release.
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