Steelcase (SCS) 19 Dec 242025 Q3 Earnings call transcript

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Steelcase Third Quarter Fiscal 2025 Conference Call. [Operator Instructions]

Mr. your begin may you conference. O'Meara,

Good Thank joining XXXX Thank for everyone. for you, financial the fiscal Rob. us quarter recap you third morning, of results. our

Executive Armbruster, with President Vice Financial President Here are Chief Dave Sara today and our me and Chief Officer; Officer. Senior and Sylvester, our

yesterday, Inc. a call third webcast, is Our wires and earnings copyrighted our on this which release, accessible quarter is production being Steelcase of website. the webcast crossed is This conference

posted be to later replay of will A webcast ir.steelcase.com this today.

Our comparable by to in this conference release. forward-looking in included text of discussion reference into risks non-GAAP financial of statements. Reconciliations use may include statement incorporating included are today references and our the measures earnings to GAAP regarding the the harbor statements and the the call safe details release, with most and associated forward-looking our are measures we

to analysts. Executive investors turn Following the to questions our from over President we respond prepared I'll now will Sara Armbruster. our and and remarks, call Officer, Chief

Hi, Mike. joining today's thanks everyone, for call. and Thanks,

So highlights progress third and results against financial to remarks of strategy. we a today, few our the quarter offer explaining make our how cover I'll continue

we proud finish expect above So as the top year. to of at quarter start, of where full beginning third communicated year targets we the year. our expected, we're to our industry and share per to projected are results fiscal the of growing finish our Despite not adjusted the the earnings end

of which driven Americas the captured drove The margin X.X%. higher revenue. as improvement organic solid for tenth earnings margin an $X.XX delivered And of we revenue gross stronger segment, the delivered adjusted results organic and expansion X% by we were quarter, cost X% per In operating and growth revenue growth teams of adjusted stronger-than-expected results and benefit QX, our our delivered consecutive share. year-over-year we

we've based Americas to industry customers improved on trends with to began December. and quarter end expectations also we trend share corporate again we've order quarter, of this and our year. growth large strong Consistent year-over-year from a of the early last data, into the increased consecutive see see The the third our continued fifth quarter, latest the order outlined drove near market we our

and beginning Roundtable from customers in increased highest presence. also identify like capital We're as increasingly a level other that investments largest spending higher in activity years into CEO level X technology industries reached survey to many And stronger who head notable confidence the our month's in indicates finally, expecting and Business in-office hiring this of it's customers XXXX. are over we

of sequential from signs a lower-than-expected positive to quarter results and was and profitability and year-over-year the want strong International wins of restructuring APAC quarter some segment. growth regions, actions. note such significant our few Americas the additional of in I by in offset higher also customers the in order The China partially largest and EMEA. some In the EMEA as levels launched our activity in and we growth across

changed more workplace. has in years generation, to in it to me dramatically than will Work ongoing that see has start impact our we with past let So the turning the trends transformation. continue strategy, X and

what to we describe briefly I'll continue So observe.

are to highlights are on walk workplace. the screens than join offices room. opportunity a continuing people anticipate in reliance and behavior to to bring use it their and more And changes at on in-person the we desk to privacy solutions this collaborative our new we communications how have to meeting significantly screen customers. our First, who a office meetings computer likely the in among Screen-based interactions even People overtaken together.

it's We adopting of new growth AI-ready and economic coming rapidly are that see employees indicates workplaces. their and from technologies, a these to cycle organizations artificial Second, intelligence. super design time

flow the change, require tools, AI those and redesign that supports the adopt of people work a space processes. more will work that of will As

the are workplaces addition we're seeing also teams support trends, that X tackling to like really those In evolve sustainability. complex issues

So we see employee their respond people using autonomy and well-being increasingly And this concerns by also new of space and to kinds support. organizations like collaboration ship spaces giving privacy. things more to demands

helps working. the of So control with trends, workplaces This to inherent to next multiple of generation needs and really flexibility community-based types these across response by customers for This of way we're many of design inspiring about called these design. to diverse the respond providing that choice them in and introducing thinking a office prepare dynamic work. companies helps employees, approach create

So our to the of Americas order all a area consumer in growth, One focus business. health for have year-over-year posted few in efforts quarters. diversification. diversification I let talked our On move year-to-date of basis, is our and me haven't care, that a about now customer segments except

health want support with we I So share how to needs. organizations today their unique

solutions year. In delivered health We believe largely continued compared the to create that care by clinicians customers, prior the is better for Healthcare and communities. and poised is care health more third care demographic we driven an these growth U.S. aging and quarter, support experiences And evidence-based families our that serve to industry of requiring the growth, services. strong for business revenue patients

health in dealership, furniture our U.S. and customer's completed faces. deadline. operational In capabilities older local our project short and of leveraged clinical pieces than to recently to time a we We system a a that tight furniture funding very on within for of patient scale deliver period X,XXX that care replace received very more with working a had

experience. our really reimagine And we care similar care patient health best our with many needs and support see customers. health that's institutions we where to modernize And infrastructure the

pillar the to build profitability I my So remarks. opening turn to our want on now of strategy, let me and

year, to for strengthen and discussed to past initiative the business capabilities processes transformation our As competitive been executing we've we've enhance advantage. our our our simplify

the which and of testing. go for quarter midst the implementing processes us targeting developing in second additional and in fiscal new now a system development live and XXXX, Americas, in are and are time ERP We of the of we to allows

Now people I'd planet, about think where efforts of significant the we like good better are you for as well-being circularity. is customers which to business our planet, for our update a area the use for our force and and we finally, futures on designing making impact one and design as our for

of reduction now global have them our solutions global companies science-based the are market customers, target that The set the significant which These more number clients of XX% who cap. up year, in are carbon largest many goals. seeking own carbon meet it's reduction global of XXX% than their and help gone has last at

by repair and grow steel to customer maintain us relationships. options different remake or allows or those having to So reuse and case through recycle circular

in end-of-use is update circular their launching in furniture one landfills. out meet example, empower and customers goals, to expanding our and our For Europe. of These are services, keep by which this in reduce own footprint our services U.S. space sustainability new Steelcase carbon remade the

in evolve to way of ability our commitment and business our customers Our this proof our to planet. is the

congratulations who've employees meaningful people broadly to our and So Steelcase toward the and strategy. more goals helped of all across planet progress entire make our

in I'll over the about and positive now So more We adjusted quarter our finish range. financial Dave it that that our to to to strategy, turn to to against progress and detail. I'd per proud we XXXX earnings this our of results we're make our targeted our above close the share fiscal we results expect say remain review continue my outlook remarks, and

fourth initial everyone. the good and our third My and about Sara, the quarter flow. you, then quarter today remarks the fiscal will your as related Thank results, as thoughts few highlights sheet comments some for outlook I to fiscal full modeling with will year support XXXX. a morning, start well of balance our cash to share and

Our of our estimated revenue, and was we revenue per earnings were on near of $XXX in midpoint our the September expenses. The share provided third the Americas quarter $X.XX top lower of operating stronger favorability margins gross adjusted end higher the of range earnings drove range. the above million

Our finished delays. some had customer-driven some shipment due below primarily expectations orders in markets soft as project International lower and to we segment revenue our

offset X% will an in timing an we third The the impact revenue growth of comparisons. quarter Compared by to our year, backlog, on which decline including X% our the prior quarter X%, fourth in shipment international. favorable from organic Americas, beginning posted growth benefited have partially in growth revenue Americas

higher prior Setting improvement to was competitive those assets. income cost benefits decrease a in earn-out the our acquisition international and due an and discounting. fixed from the to the aside, pricing adjusted of the Americas Our was strong valuation growth, of benefits liability the volume reduction volume included largely lower year due and items in sale while operating higher gains decline from initiatives,

annualized together actions continued cost additional our and million the to segment, to drive International which are by in soft during other implemented the fiscal Due approximately $X early we of restructuring cost XXXX. reduction projected savings measures demand quarter

$XX and the short-term relates balance flow of million QX, to cash primarily it investments $XX Cash increased by adjusted million from As EBITDA. and sheet, driven

quarter X EBITDA revenue, to X.X% trailing improved as prior the X% by our $XXX X-quarter over Our adjusted year. X.X% EBITDA million compared year. trailing of improved percentage And in a the to margin prior of

cash value of our million. COLI the at total exceeded quarter, of $XXX Our total debt which surrender liquidity, which includes to million $XXX the the of aggregated end

months shares per shareholders with first over a on million XXXX. in basis. to the share, or quarterly $X.XX year-to-date returned We approximately XXX,XXX fiscal dividend we've of quarter the aggregated repurchased shares of X.X third million X When our $XX approximately in

our ERP the targeting go-live time provide second for and quarter for Sara more testing. we As are mentioned, system now to development

expenditures projecting million As to $XX the $XX $XX which approximately capital we XXXX to investments for related a in included implementation. reminder, million million ERP were of fiscal

go-live expenditures expenses million the XXXX. shift fiscal of the to increasing related for approximately $XXX our fourth quarter, we additional targeted capital additional total our and With anticipate development capitalizing projection in

capitalized includes internal million costs. This approximately $XX full year of estimate labor

into As stabilization expected we and development costs are live much and incurred. the project expected to and the finish expensed as testing, the move build of to fiscal phases be go phase, related XXXX

capitalized more impact fiscal year-over-year $XX initial than expected amortization costs be including As a costs. result, expected the to is the million, to of operating annual development the

in growth the an capturing streamlined QX XX% after XXXX. consecutive the compares the rate Americas, X% live international. the the to modestly in capability we quarter value of the compared growth in in also prior year. In fiscal expect current processes go to X% decline ERP We to some the of prior were and in system X% of down business in enhanced marks the Orders and and quarter order the Americas our begin quarter included growth growth of year-over-year of and year QX new fifth the

into trends growth November to government customers. be and continued order large from customers have order as Sara strong The corporate mentioned, our was And driven December. improved by in

grew QX, business Our declined. orders day-to-day business while or in project our continuing

by evidenced growth believe our as the gains and are leading project our share transformation is win last we the business to rates how strong market the the continue of over of year We in estimated in reflective Americas. the workplace

For Asia driven major X% most our in order France. declines was decline and Pacific by international, the in of markets

in However, East. from we recent in we as and large by international our see smaller our are EMEA in wins growth did national Germany as markets related higher order opportunities France, some some global markets customers and of project Germany accounts to and activity levels Middle encouraged some with in well the

first the posted many compared second time basis the order XX% on to orders year-over-year grew Pacific for Asia in And and growth a we China quarters, sequential nearly quarter. total in as

quarter. the Turning for outlook to fourth our

X strong, backlog weeks end same the were And quarter number beyond was to of overall in prior of included year. ship Our the quarter. down while the first prior the a large over projects they X% third the period the to the compared year, XX% during orders of of growing December at the scheduled end

a an which range decline $XXX between we X% current quarter of within excuse $XXX to into me, to additional million an Accordingly, week shipments sorry, X%. taking in organic $XXX -- represents report consideration expect of million million to revenue the of after

moving an want earnings expectations, a our comments our navigating chain. to in share issue Before supply regarding we're to I few

to to Hurricane impacted The Efforts is our mitigate the and issue taken the we are is industry. related disruption across by believe was our significantly felt impacts being that laminate Helene supplier to a customers. being

in the it However, these range disruption several determining fourth for is resolved fully the could quarter. efforts months projected possible take different before the the utilized outcome than revenue be it's that we of the could of and assumptions

compares to between earnings the to prior earnings, share, expect $X.XX year. it adjusted relates which to in report per As of $X.XX to $X.XX we

estimate which of operating the includes XX.X% of of In addition to between range expenses earnings million $XXX projected amortization adjusted approximately of assets. margin the includes to to million intangible $X.X revenue, related $XXX gross purchased and million

fourth of nonoperating believe expense, approximately our results our approximately year-to-date other $X net will proud and XXXX projections, results tax progress finish our important expense per share the we making projecting we're our interest million Based of effective are and and items rate targeted expect most And adjusted to range earnings year. we of Lastly, quarter to and XX%. on we're Sara the fiscal the on teams our above driving said, initiatives. we're as for an our

As macroeconomic targeting Americas to we're think we in about customers growth are we XXXX, supportive revenue organic hearing large believe of current from year. begin earnings adjusted improved the fiscal what environment next us and the and for our

significantly, During the of was we from increased about a the believe those the correlation companies services current there took with demand in stance employee and offices. their year, sector improved financial many presence

activity large presales in customers and improve. regarding expectations similar the a of shift are to across sector, beginning seeing also expectations demand technology in the number where are in several days We office

expect and we earlier. markets care that and encouraged the also our from signs midsized growth to by in customers, small health I are positive We education international mentioned

customer potentially may key in near growth inflection the from to of meaningful our to customers. organic that be demand segment level The fiscal driving or it at is seems revenue point. And large an corporate XXXX related

initiatives we fiscal adjusted improvement initiative gross our from new targeting to and XXXX, from benefits capturing and in are transformation value additional business Regarding our we begin earnings system. ERP some expect margin

of could stated, further flat system. to related and to during year-over-year. the in XXXX our implementation new we and some less XXXX XXXX, Plus, to by our However, volume expect we fiscal I benefits leverage revenue fiscal as cutover expansion in diversification prudent Thus, the strategies. of to in to the compared projected to expect imagine fiscal be gross we level mostly costs be invest it's intend driven margin of operating relatively the capitalize growth, expense inefficiency

March. we complete more in a organic planning growth now, believe After to a point. likely XXXX questions. for operator detailed mid-single-digit but provide For rate our there, a turn a for revenue purposes process we'll updating your of we From fiscal in we fiscal with outlook XXXX models margin. is this contribution will back reasonable QX, it at low- to the detailed target low

your of first And comes Instructions] [Operator line today from Gardner question the Reuben Benchmark. from

maybe Dave, start where ERP. just ended we on to

those modeling of then about? and the does how inefficiencies that Just away just clear, that when being -- how is purely to that's be amortization for we that you million, $XX 'XX? that much kind costs capital much of and And is of talked include get may Or go out expensed? to start-up onetime kind of

this swing I purely So $XX But it's expensing we is implementation us next million. expensing capitalizing can reference consulting year-over-year that with and the internal -- that cost, to is go-live separate, to about related it the outside talk the of made and and million is related that. labor $XX year associated most And year. inefficiency likely

head. top the my of On that that onetime, don't have are the I off elements

could neighborhood Mike $XX guess, estimate. with cuff confirm much would up of up be estimate, the the reasonable But is off to probably maybe that number a I follow follow My let's in think I million. whether Mike with you.

million. some, And is but Okay. ERP that today as then you initiatives, get offset gross the -- that fully That's far the or mentioned $XX will the benefits have it's you as helpful. that to your margin the won't efficient that whether from offset you stance your items it

want And to so, just be clear.

those You're Okay. going more get $XX you're not million that suggesting than to in things?

that benefits ERP year a I talk on of we the and minute inefficiencies we started but about the get imagine. towards the end No, -- back of new the think the should

and be to ramp We any ramp after to we then up to catch gradually up, down and ahead of the expect we'll have don't in because advance go go-live. impact it customers the will live production We build believe. able

projecting gross is improvement to most improvement due will initiatives that than will the inefficiencies, some, on But versus that things meaningful I'd our why the growth in other to margin attributable margin which other the will be be year say, we're additional targeting. facilities point be that likely the volume impact next production also gross labor this drive will we'll at working

I And highlighted you order talk what year Got was guess, trend, the can maybe, that funny I on that? you year was a press of one, about Okay. it ago? anything release. think ago Was top comparison growth on was it. going X-week there the your that how growth? in on Or

some of point do the the number? that you Or catch-up of after translating lull funnel kind secondarily, that then And into have reaching some and heading potentially kind that of feel we we've that like do of XX% was of how think to orders maybe -- it does feel is election? pipeline just you some like the kind that about

think we I pretty Well, feel about it. good

referenced XX in in of weeks, X% the we I growth think last is the X X top first the first rate year, so a weeks, X. on

So we about feel good pretty that.

the potential to weren't large guess I due waiting You weren't elections. -- would that I election. certain, see lull to but customers the of know they for don't corporate our outcome the referenced the necessarily

the playing than their sales I out differently internal orders CRM of think tools was timing we're suggesting. just our or

were just on we pretty them felt even that, the base before across into maybe were call call were seeing them. felt last and active. We We good activity that won seeing about our customer that large develop coming. levels we we had mentioned weren't The like and the those orders. the projects orders So

first some weeks we're to in think December. see starting of X And the of I that

that international breakout and America's does kind of of kind The sneak expectations to year, restructuring you kind you to businesses look like that versus have? mind. and mentioned other you mid-single-digit international. framework next one if going between I'm low for Okay. there, What internally, don't today more of in

volume haven't that but International we implemented which some level segment, of ironed in cost and launched and by the of XX growth profitability targeting of volume entirely last months. over benefits the the activities driven all growth, level some be We'll we've reduction out the almost

if of you taking, related footnote a when restructuring that get about the activities fact, segment. been a color we've each provides we of the International to one have later our Q there's In second, many which that been today, release some restructuring

strong the Congrats on holidays to happy of all quarter you. and

question the Group. Steven line Your Thompson of comes Research next Ramsey from from

with I the start to business wanted trends. continuing

order shaping the decline? maybe you You continuing quarter. that 'XX? they magnitude FY into up the then business Could cited that see in maybe declined of clarify you how of And

question, good is year. in the I growth a a Steven. decline It's against the mean, prior up strong

remember might seeing You the over into was our sector, financial as day-to-day saw that, the started maybe continuing would up day-to-day saw thing a our year a particularly we a had first show ago back in business that that improvement started ago, to business couple of years that strongly. we theory pretty once office, the business. our more we people services getting restart. And We day-to-day pick

then started nice throughout kick from the had in. of to year year, in we much last project growth So continuing. growth late And

the follow-up in get in-office a validate could markets improvement against think other the that call presence. year. it's that significantly up I on it's some show the growth sure tech suspect their Mike sector double-digit potentially in So as prior I office the vertical digit. it's to back double more that increase also going to a see we rate I'm pretty And in

tech it already for made. can in sector add-on relative That's you to services sector trend comment Okay. the you business so in to feel starting financial a trend the is to an upwards Are that the that or we how inflect comping maybe maybe get then the seeing that And just line? continuing describe helpful.

the I in declining. vertical yet, haven't Steven, don't significant was look to seen noting to on it really it clicked way remember I a else at business But but also haven't I continuing while you, that market have growing closely. double it by anyone I tell was everything

Okay.

Okay. Understood.

that happening for XX 'XX? broader it maybe then is On if past put it discounting to Can months, lastly, -- was saw X to the expect you geographies And in competitor into the or do persist you into international impact? if calendar context pressures. was worsened? a that you it particular And side,

say would for Well, Western in competitive that phrase the say worsen. the volume European that I years have know market of result. would been the broad-based. feels I the challenged don't quite would levels and last relatively I use couple as it's I a just

few geographies. focusing to intentionally We our on in certain volume certain levels markets vertical and are different things also expand a in

we've wouldn't engaged I say go to that business, but your customer have after and discount used serious competitor, a with to show about to business. only that disrupt running you dollars sometimes

some way competitive it's discounting more of that's So is Europe. it is quite there element in of strategic my but saying

Okay.

gains Okay. one, last or That's effort you've around helpful. would be And so. Americas the your in success last cited that me then share for in year

from Or you winning year, business? the next incremental As shift out any you places? share where same you look do kind gains are see into the the do in see coming of you

our I we going some gains not and the our to did going workplace, share think we're the pandemic. during the the to of as continue target transform. how invested worst to reduce stayed that competitors of And did force we have to extent believe, we sales the is

And so accounts. kept large strong with our relationships we've global

will and year. gains So continue last has we're it this that that, year much to produce of like market hopeful share

excellent. That's Okay.

of line Burns Your Greg next the from Sidoti. from comes question

little might 'XX? your where to potential And business? tariffs that give a of how Can that bit reflected us maybe your your you in just next color is much exposure for of on impact fiscal year, guidance

you Well, a up. that brought good was before Greg, call, this

would we every up So knew in it It comes one-on-one. up. come virtually

guide. don't anything our So really have we built into

Of that guide. built markets in place and currently the into course, some are tariffs are

administration. new the But referring you're put been to I place being potentially tariffs as by incremental in that talked think have the about

and and the inventory being at evaluating this into contingency we actions -- of have are we're quite advance includes buying in place. tariffs plans, where some potential taking So which put additional we've we looked carefully, can,

falls same kind that tariff our the tell chain in process One X into is business bucket So we're or to we the -- of is really would enacted, really the passed of supply of those suppliers doing some you imaginable a exposure of that buckets. bucket if industry. customers industry the it's internationally. I the of kind that. affect or much think where it it's leveraging those broader on because be will likely tariffs of are will And tariffs

things to that in-house tariffs, time a the There's some we're and provide more at Taiwan where positioned to look bucket, an developing markets. bringing another China continuing contingency little maybe to and referring also international And other uniquely take. evaluate I'm bit we our a and will are ways bit bucket to little might plans. we've inventory and exposure what reduce at looking building been that to area actions more That's the we in advance which want additional of us by

which a third that for know, thousand those largest, guess, -- then is relatively Mexico. just operate We one U.S. a And us the to maquiladoras, in here are developing And contingency action, be you're we avoid that a administration these something because going not and the of out think seems same plans, going And that thousands companies experts you not I at to taking will amount to a operating are predict the the financial across are those produce they few time. significant necessarily but as significant we're the to if create action wants actually couple impacted, to lot is I of inflation you of, be we're tariff because product maquiladoras, convinced of that as play U.S., we're of related maquiladoras. the if

accordingly. but there they're to industry going everyone. leveraging -- to a not unique will to saying position but we in of all some not not I'm we we anything a the action -- have not they So the were, of if But are, bit -- Maquiladora take of not because is evaluate and Mexico, us do related are

And year Okay. slower of this do coming the And to is you has development think it's The you your kind than of the thought the the you slower. Sara, also business a kind recovery segment? from then guess, little Americas Is Or year slower it where mentioned maybe development, into applied I be that in thought. related coming where been that I why would bit year. to maybe been of think, international? remarks, prepared into

Yes.

I was for think the projections comment growth. my really industry around

industry So played and coming the I looking were suggesting, like of growth. as and slightly actual And those as out shown into has data kind industry year, data industry data flat industry projections the the say, across in things or the at indicators the would has entire a market. a the BIFMA negative modest year Americas, whole

just a my relative to in we've our we was bit of comment seen compare So to that industry of growth and our were terms data really how expecting interpretation that be little slower.

Now Dave continue as we to mentioned, nice late, momentum. a Of we've of lot share. seen take

positive lot think for we things a that So I us and may the of give see a sense future where momentum go.

spaces all extent invest employees expecting to office, the making to to organizations what what seeing return demand. and they're as and to we And the to to that, with have -- what I think decisions goes respect are really, the do broader they generate just are back their you we industry extent data which in

industry it's and industry we see year, projections prospects the into the bit the in to thinking a coming really, we are how about play more were projections than relative things our hindsight, out. So optimistic

when look in the like the whole, Okay. and for And I the then some favorability the we just lastly, for a results, quarter revenue third as fourth there know take them quarter we was at guide guide is coming in in, look in quarter expectations pulled forward half, some second you when shipments, whole? as that line it But third timing a maybe the terms of revenue. at the the so with order of

results view to XXXX? into build you Or we the XXXX? momentum year as is maybe the expect how Like for it what do head guided below you to we maybe versus still and and heading expectations second into half

expectations year, Well, levels talking as the If it it demand went building of expectations on organic to you're we back imagined they're we building what level with through of kind where the to year depends full certainly between growth the the about. those with we beginning fiscal below for year. of X% go X%

compare in X because you say later of to initially these bit coming if X anticipating I large to the more -- to months in of you it If recent little slightly more look maybe timing would line were lower project it's we ago. months than X a orders ago, expectations,

is the a earnings feel we're building of what in like the really top it's But and good demand softer. of of it's little adjusted or next feels on we for year. about projected range going coming So bit into that ahead year, I

Markets. Joe question of the next Your line Gomes Noble Capital from comes from

to wanted start the just I out on side. international

just so of confidence And economies? to and it get the You you there the kind to on green what speak. more side? talked of or about wondering revenue improving sustainable international and upswing Is gives kind to happen orders just shoots, the some a needs what

some the had Are talk about here like return Europe office, I the lot home as trends we don't here the of work U.S. to in although think from a same to they in other there in Americas, we did that extent

segment. just handle line drive see on international in start to to trying top to So get the to a really better what happen needs the you

they're pretty much maybe the and larger smaller as have markets Certainly, agree been. macro quite some I bigger And some Western it are office. the part about or of don't exceptions. I believe to is comments important few markets. the back your midsized in with a maybe of because exceptions. Like with Europe part return as of

particularly in markets. some potential improvement levels I or of think the Western still demand to Europe return there's with associated So in room for office, largest

what some the And up companies are the is global U.S. large what markets. bit also these then doing back showing in largest seeing we're in office it's internationally. getting And in of are the not differently the of U.S. as internationally, from internationally, and but some little to our and/or the is we behaving accounts level a demand is, up, picking international we're only

different and than with -- same the because targeted customers been targeting not higher in We're had the buying accounts had targeted key we levels. office of of targeting than we level had intention core past the them our in a some at

we're some shoots So from think, actions. green what feeling, is our I

some world. green global the from also that we're around the feeling think we shoots accounts serve I largest

today worst bottom the don't but the are off China. some bottoming seeing And signs want that in and that turning that I struggled particular of in we're a definitely potentially earning, the be declare to we're markets have potentially couple could it's bottom also there and at over. really

for that there's of a different some China. and that, been business pandemic. our than to sales still they're the compete we've of impacted dramatically opportunity had team the are to targeted win showing us prior that we even opportunities though in accounts for And those lot can And we

see that your And efforts, dose, business? helpful. especially the then do and very their some administration of on impacting you That's with the how new

the and first fully application support office. people back get Well, I their to foremost, in will

federal serve. I agencies numbers. read think estimates, latest my that percentage I that government the of some think articles we low of some single-digit we suggested in our the by I've occupancy that feel And

actually workforce implement think levels into I reduction if understanding up. things them that suggesting the So see could be they of to pick activity to they're needs an back by getting environment office we'll some target. they're that of going to begin impact the and the transform, also There

there government negative level a improve. be that. of if like And So very, from that lot feels the is improves, the could of as of consequence could very activity But occupancy some low. it

for And me. one last one Okay.

the the about potentially see out You that's it supplier quarter of to like more Do the quarter? impact fiscal or be fourth contained fourth talked have 'XX here. kind was It potentially sounded if the it laminate issue. going just would impact, that you into to

that chose it the of assistance that needs why been got offered in sure through that back end which quarter, pent-up we've entirely and not a the a state, up. good it running script be lot just location. is a by different It's We're of in caught we'll And of fourth a and we They've to I my demand believe, not our remarks question. running And be to today. in they're while up and company. I include and couple I'll

questions time. call back are There further no turn over this you. at the Armbruster, Ms. to I

Thanks.

thank all joining today. you to want for So I just

As season. your happy wish appreciate we interest and always, we and Steelcase, families you a holiday your in safe and

concludes today's This call. conference

disconnect. now may You