HNI Corp's stock plummeted 5.01% on Friday during intraday trading, following the company's fourth-quarter and full-year 2024 earnings call. The call revealed several factors contributing to the decline:

1. Slow Recovery in Residential Building Products: Despite expecting revenue growth in 2025, the earnings call indicated a slow recovery in the residential building products segment. The housing market weakness persisted, and any significant recovery is anticipated to occur late in the year as year-over-year comparisons ease and growth initiatives gain traction.

2. Tariff Uncertainty and Impact: The company expressed concerns about tariff uncertainty and rising inflation expectations, which could lead to ongoing volatility. In the first quarter of 2025, HNI Corp expects a temporary price/cost drag due to the anticipated impact of tariffs, estimated at $3 million to $4 million. However, the company plans to fully offset the tariff-driven inflationary pressure through various mitigation strategies.

3. Demand Volatility and Slow Revenue Growth: While workplace furnishings orders and backlog showed improvement, the company anticipates revenue declines in the first quarter due to softness in the transactional part of the small and medium-sized business (SMB) segment and large project timing within the hospitality business. Overall revenue growth is expected to be in the low to mid-single digits for both segments in 2025.