Steelcase Inc (SCS)

Steelcase, Inc (SCS) stock dropped by 5.75% due to the slow return-to-work trend, which is impacting the office furniture manufacturer's outlook and performance. Here are the key highlights:

• Impact of Return-to-Work Trend: Steelcase's core office furniture business has been affected by the pandemic, and the recovery has been slower than expected. The company reported earnings of $0.23 per share in its fiscal fourth quarter ending Feb. 23, on sales of $775.25 million, slightly missing Wall Street's estimates. Orders grew 4% in the quarter, driven by 8% growth in the Americas, while international orders continued to decline. CEO Sara Armbruster noted that the domestic strength was driven by large corporate customers seeking a stronger in-office presence.
• Outlook: Steelcase expects full-year fiscal 2025 earnings to be between $0.85 and $1 per share, which is in line with Wall Street's estimate of $0.92 per share. The company's backlog of future orders stood at $625 million, down 8% from the prior year, but recent orders are trending ahead of the previous year.
• Investor Reaction: The decline in Steelcase's stock reflects investor disappointment with the company's modest outlook and the ongoing challenges in the return-to-work trend. The slow recovery in the office furniture business has impacted investor confidence in Steelcase's ability to grow and adapt to changing market conditions.