MillerKnoll Inc. Reports Strong Earnings Despite Market Drop

Author: Dylan Bailey Updated: 09-24-2025 04:27 PM

MillerKnoll Inc. Shares Experience Decline

MillerKnoll, Inc. (NASDAQ: MLKN) has seen its shares traded lower recently. Following the release of its first-quarter financial results, investors have reacted cautiously.

Financial Performance Overview

In the latest report, MillerKnoll disclosed adjusted earnings of 45 cents per share, far exceeding the consensus estimate of 34 cents. The reported sales of $955.7 million also surpassed expectations of $910.96 million.

Sales and Orders Growth

The company experienced a year-over-year net sales increase of 8.2%, reaching $961.8 million. Additionally, it reported a notable 11.1% growth in orders, climbing to $1.04 billion. This indicates a robust demand for their products despite market fluctuations.

Cost Challenges and Operating Expenses

However, MillerKnoll faced challenges with gross margins which fell by 40 basis points due to approximately $7 million in tariff-related costs. These pressures were somewhat alleviated by the increase in sales which helped sustain overall performance. Operating expenses for the quarter amounted to $321.9 million; adjusted operating expenses, which exclude certain costs, reached $305 million. This increase mainly reflected higher incentive compensation and selling costs.

Restructuring Effects

The company also recorded $16.9 million in special charges related primarily to restructuring activities and amortization from purchase accounting. Such restructuring efforts are aimed at enhancing operational efficiency and positioning for future growth.

Margin Insights

Despite the challenges, the operating margin improved to 5.7%, compared to 2.7% from the same quarter last year. However, the adjusted operating margin experienced a slight decline, falling from 8.3% to 7.5%.

Looking Ahead: Q2 Forecast

As MillerKnoll turns its attention to the next quarter, they project adjusted earnings per share will be between 38 cents and 44 cents, slightly below the consensus estimate of 41 cents. Furthermore, they anticipate sales in the range of $926 million to $966 million, aligning closely with the consensus estimate of $960.66 million, indicating cautious optimism in their business outlook.

Market Reaction to Recent Earnings

In light of these annual results and forward projections, MillerKnoll's shares closed down 10.83% at $16.96. Such movements reflect a mix of investor confidence and market volatility.

Company Insights

MillerKnoll continues to adapt and evolve amid market challenges. Their commitment to innovation and customer satisfaction plays a pivotal role in their ability to navigate through economic uncertainties.

Frequently Asked Questions

What is MillerKnoll's recent earnings per share?

MillerKnoll reported adjusted earnings of 45 cents per share this quarter.

How did MillerKnoll's sales compare to estimates?

The company reported sales of $955.7 million, beating the estimate of $910.96 million.

What challenges did MillerKnoll face recently?

The company faced tariff-related costs that impacted their gross margin despite overall sales growth.

What is the forecast for MillerKnoll's Q2 earnings?

MillerKnoll expects adjusted earnings per share to range from 38 cents to 44 cents in Q2.

How did the market react to MillerKnoll's earnings report?

The shares declined by 10.83% to close at $16.96 following the earnings release.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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