By Natalie Weger

Steelcase posted higher profit and revenue in its latest quarter, helped by recent job cuts and large corporate customers buying more office furniture to redo their workspaces.

The Grand Rapids, Mich., office-furniture company on Wednesday posted profit of $13.6 million, or 11 cents a share, for its fiscal first quarter ended May 30, compared with $10.9 million, or 9 cents a share, in last year's quarter.

Adjusted per-share earnings were 20 cents, just ahead of the 14 cents that analysts polled by FactSet expected.

Revenue increased 7% to $779 million, with 9% growth in the Americas and a 1% decline in its international business. Analysts were looking for $762.4 million, according to FactSet.

The company's growth was led by large corporate customers, which was offset by declines from government and education customers.

"We delivered strong revenue growth, led by our large corporate customers who are investing to reimagine their workplaces," Chief Executive Sara Armbruster said.

At the end of the first quarter, the company's backlog was $801 million, 2% higher than the prior year.

The bottom line was boosted by a restructuring in the first quarter, including the reduction of salaried employees and elimination of open jobs, which target about $20 million in annual spending reductions. The company has also begun working with unions and work councils in Europe to further cut costs in response to weak macroeconomic factors and lower demand in Germany and France.

"These actions are in support of our broader goal to improve profitability in our international segment," Chief Financial Officer Dave Sylvester said.

For its fiscal second quarter, Steelcase expects revenue between $860 million and $890 million, with per-share earnings between 27 cents and 31 cents, and adjusted per-share earnings between 36 cents and 40 cents. Analysts surveyed by FactSet expect revenue of $878.8 million, earnings of 38 cents a share, and adjusted earnings of 41 cents a share.

Steelcase shares have fallen 10.9% over the past year as investors worry about the effects of tariffs on the furniture industry. Shares were down 5.8% at $10 in after-hours trading.

Write to Natalie Weger at natalie.weger@wsj.com

(END) Dow Jones Newswires

June 25, 2025 16:59 ET (20:59 GMT)

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