thank Thanks, and Matt. Good morning, joining you us. for
demonstrating our exceeded actions businesses. results quarter and market to streamline momentum recent strategies, the our second our positions our our Our expectations, of
key today, three will highlight the call On I topics.
our transformation First, Furnishings helped volume. drive in are non-GAAP profit profit Workplace lower despite schedule of growth ahead efforts and
been have margins Furnishings Workplace Our reset.
have closing the become Second, acquisition, benefits more International the the since combination. confident in Kimball even we of
International's In closing projected our attrition addition, divest in business. to closed, we anticipate exit have strength will increase and Kimball signed Poppin the of Once and core an agreement the the third quarter. unmask
on residential long-term third, products, And strategic in actions focused to profitability we put our building near-term place while staying support and investments.
to before with will we outlook. some commentary closing then your Marshall will our conclude highlights, those review questions. Following open the call general I
first the topic. Moving to
non-GAAP Kimball sales. as lower furnishings of acquisition, schedule organic profit When the non-GAAP to excluding grew year period efforts are and compared XX% International workplace despite lower we Our prior profit the despite EPS X% transformation and volume. ahead grew
primary our points. driven profit gross Non-GAAP margin improvement expanded margin basis basis operating by sustained points unchanged transformation driving workplace and plan which furnishings. expanded non-GAAP That plan of XXX are The remains XXX actions, four margin improvement. and was and consists
driving First, increased are we productivity.
near-term Our and productivity our we the exceeded in second reflected efforts greater in have half. second targets even quarter as expect our impact an results,
also our our efficient facility and in investing more We operational footprint to primarily are make new resilient through Mexico.
results future they these benefit will greatly Our from mature. investments as
we Second, cost our have streamlined structure.
previously We to savings our impact expect million Furnishings year. of announced this continue initiatives to $XX Workplace cost
we are rationalize continue are provide divest past attractive Third, over improve fourth, continue examples simplify actions efforts offering our to the markets. benefit. a to to we profitability. price our costs simplification most year e-commerce of efforts our our and to And business China business, took our improving that -- The our currently
actions, quarter impact X.X%, points As Workplace That the International non-GAAP improvement the a profit of acquisition. was XXX third of non-GAAP result Kimball second of excluding in operating XXXX, quarter expanded margin to Furnishings. basis and consecutive period in Furnishings quarterly year-over-year the was the fifth highest Workplace these the margin it of since
depend does Our upon profit volume plan not growth. transformation
orders for Segment first XXXX are year-over-year. approximately demand the grew Furnishings. X% trends encouraged in months the However, six we Workplace by of
to see continue position. segment, We unmatched an to midsized competitive the where we in customer have strong performance small
and small expiring Workplace while events SMB orders first secondary to population the employment XX% group the furniture midsize to up Furnishings order the increased same mid-single-digit leases. declined during adoption customer over geographies at from were of period. rate orders Organic contract approximately hybrid half, a shifts trends work from improving offices, customers associated growth models rates by and the with reflect driven with The
depth, price combination positions breadth through be with International. coverage our and and align point and trends our with Kimball further all market These will our that strong product enhanced
our in become International. positions ancillary the evolving combination even second will in strongly Moving Since products. The my lead of strengthen to an secondary benefits our workplace addition we have with and are Together, of with business. positioned topic. confident we leading Kimball the environment closing, to expanded more geographies KII in in presence
And to identify beginning more. profit with see as opportunities rate potential the is both between the floor $XX for strong, of organizations sides previously We fit announced and cultural the new amount and synergy are annual a unlock strong run growth. now for million
quarter. sale masked KII have to an third to which annual reducing operating annual be strength is estimated expected generated acquired Poppin's was XXXX. have revenue collectively sell XX-month by KII's by divestiture Additionally, results, is to during signed losses XX%. on of an businesses, million, The $XX margin closed in profit Poppin, the increase which operating the we by of trailing the Based operating while over million. agreement $XX Poppin core
third have in on stay we focused is Building put My topic strategic to in place near-term investments. profitability actions we while Products, support Residential long-term our
with Our face in volume housing market. the Building general segment to the weakness line Residential Products broader pressure in continues
to response segment expanded declines, the volume to support cost have reduction In our efforts profitability. we
million. to will Specifically, lower $X an expenses by these actions XXXX $XX additional segment million
our Products combined to from million previously $XX up now to cost previous which million, the of $XX $XX announced, actions, efforts impact Residential this million, with HNI-wide reduction $XX When our year. will million Building million total $XX
normal the of segment third year. patterns, Our profitability return result cost with this improved quarter seasonality will reduction the beginning efforts, in along in of
demand In have addition, improvement. shown trends recent
the when half in This get in the of the down comps orders XX%. as in the segment XXXX. a quarter Furthermore, half were decreased from improvement quarter first second is XX% compare versus of year, second easier XXXX, orders XXXX. against this minus second of significant XX% this Second we quarter
US segment for indications to renovation lower is existing sustained we long-term this dynamics robust environment homeowners many to and future with the accelerate given housing construction relocate, current interest growth as less having and revenue their activity profit are that likely Short-term, will demographic for to mortgage rates. attractive intermediate are remain notwithstanding, trends growth. as well encouraging point undersupplied, demand positioned the
we In growth market addition fundamentals, to strong have opportunities. unique
market, footprint. The initiatives areas market the category and expanding our our capabilities new to the category-leading our of distributor invest installing and of aimed including opportunities of innovation, expansion strong at positions strong to product fundamentals, our the wholly-owned XXXX. awareness, growth beyond return unique growth the point in online continue We in
will discuss Marshall our over outlook. now to I the to Marshall? turn call
