CONSUMER HARDLINES

Our consumer hardline platform focuses on companies that supply manufacturers and individuals with products they use every day. Exacerbated by the global pandemic, these products – for home use and for office use – are bought in stores, sourced from dedicated dealers, and transacted for online. The distinctions between channel and sellers have now blurred more than ever before, a phenomenon that seems likely continue. Moreover, the methods for serving these diverse interests, as well as buyer expectations, have and continue to change. Successful companies are, and will be, those that that will continue to adapt and innovate to new conditions, opportunities, and unexpected events. Our work will attempt to explore those issues and initiatives.

Recent Sector Insights

CONSUMER HARDLINES
Culp, Inc. (NYSE: CULP)
Updating Estimates After Pre-Release; Revenue Guidance Modestly Lower Than Prior Expectations; Inventory Write-Offs Deliver Heavy Blow; Cash Position Remains Solid
Update Note · 23 Nov 2022

Culp pre-released results for its 2QFY23, in which it lowered sales guidance and warned of inventory impairment charges and a restructuring.

CONSUMER HARDLINES
HNI Corporation (NYSE: HNI)
Fireside Chat: SVP & CFO Marshall Bridges, Allsteel President Jason Hagedorn, and Vice President, Product & Design Jason Heredia, December 1, 2022, at 10:00 am EST
Fireside Chat Invitation · 16 Nov 2022

Please join us on December 1, 2022, at 10:00 am EST for a conversation with SVP & CFO Marshall Bridges, Allsteel President Jason Hagedorn, and Vice President, Product & Design Jason Heredia. HNI Corporation is one of the largest participants in manufacturing and selling office furniture in North ...

CONSUMER HARDLINES
Commercial/Contract Furniture/Consumer Hardlines Industry News: September Orders Remain Negative; Earlier Order Growth Continues to Support Positive, Though Slower, Sales Comparisons
Industry Report · 10 Nov 2022

This note addresses the Business Institutional Furniture Manufacturers Association’s (BIFMA) Monthly Market Pulse (MMP) of incoming orders and sales for September 2022. Normally, 50+ BIFMA member companies voluntarily submit monthly sales and orders to a national accounting firm that aggregates a...

CONSUMER HARDLINES
Mattress Imports Slumped Sharply from All Sources, Renewing Concerns about Domestic Inventory and Demand
Industry Report · 10 Nov 2022

This note addresses the September 2022 mattress import data posted on the Department of Commerce, US International Trade Commission DataWeb at https://dataweb.usitc.gov. We track that data for three specific Harmonized Tariff System 10-digit codes (HTS-10) that define adult mattresses. Detailed i...

CONSUMER HARDLINES
HNI Corporation (NYSE: HNI)
3Q22 EPS Beats Estimates; Revenues Miss; 4Q22 Guidance Cut Reflecting Challenging Business; Now Implying Lower Earnings for 2023
Update Note · 25 Oct 2022

Before market open on October 24, HNI reported 3Q22 results. Non-GAAP (adjusted) EPS of $0.71 on sales of $598.8 million beat our EPS estimate by $0.04 and consensus by $0.06, yet missed revenue estimates for both significantly. A full statistical review of the results is in our attached tables.

CONSUMER HARDLINES
Commercial/Contract Furniture/Consumer Hardlines Industry News: August Orders Turn Negative; Earlier Order Growth Continues To Support Positive Sales Comparisons
Industry Report · 13 Oct 2022

This note addresses the Business Institutional Furniture Manufacturers Association’s (BIFMA) Monthly Market Pulse (MMP) of incoming orders and sales for August 2022. Normally, ~50 BIFMA member companies voluntarily submit monthly sales and orders to a national accounting firm that aggregates and ...

CONSUMER HARDLINES
Consumer Hardlines: August Mattress Imports Rebound; Mexico Continues To Gain Share As “Near-Sourcing” Seems Entrenched; Kosovo’s August Imports Likewise Surged
Industry Report · 10 Oct 2022

This note addresses the August 2022 mattress import data posted on the Department of Commerce, US International Trade Commission DataWeb at https://dataweb.usitc.gov. We track that data for three specific Harmonized Tariff System 10-digit codes (HTS-10) that define adult mattresses. Detailed impo...

CONSUMER HARDLINES
MillerKnoll, Inc. (NASDAQ: MLKN)
Reports 1QFY23 Adjusted EPS Ahead of Estimates as Integration of Knoll Merger Continues; Guidance for 2QFY23 below Estimates as Order Pace Slows
Update Note · 05 Oct 2022

MillerKnoll reported 1QFY23 results on September 28 after the close. Consolidated 1QFY23 revenues were $1.079 billion, up 36.6% Y/Y, and just fractionally below our estimate. Adjusted EPS was $0.44, beating both our estimate and consensus of $0.33.

CONSUMER HARDLINES
Steelcase, Inc. (NYSE: SCS)
Updating Earnings Estimates for 3QFY23 and FY23; Slow Return to Office and Looming Threat of Recession Challenge Near-Term Outlook
Update Note · 26 Sep 2022

• Following a better-than-expected 2QFY23 earnings report and a cautious outlook, we are updating our earnings estimates to reflect guidance and management’s comments regarding trends in orders.