MillerKnoll, Inc. Reveals Positive Growth in Q1 Fiscal 2025

MillerKnoll, Inc. Shows Growth in First Quarter Results

MillerKnoll Inc. (NASDAQ: MLKN) has reported its financial results for the first quarter of fiscal year 2025, demonstrating a solid performance despite market fluctuations. The company has showcased resilience with a notable increase in orders and a robust backlog, reflecting enhanced demand for its products.

Financial Highlights for the Quarter

The first quarter saw orders rise by 2.4% on a reported basis, boosted by an impressive 5.2% growth in the Americas Contract segment. MillerKnoll's ending backlog reached $758.0 million, marking a significant upward shift of 9.2% compared to the previous year. The company’s gross margin in its Global Retail segment improved by 160 basis points, indicating ongoing operational improvements.

Q1 Fiscal 2025 Financial Performance

For the quarter ending August 31, 2024, consolidated net sales were reported at $861.5 million, down 6.1% from the previous year, while gross margins remained steady at 39.0%. Operating expenses totaled $321.1 million, slightly higher than the prior year's $317.8 million. The adjusted operating expenses decreased to $286.9 million, reflecting successful cost management initiatives.

Segment Performance Analysis

Breaking down the performance by segment, the Americas Contract recorded net sales of $454.6 million, representing a 7.3% decrease year-over-year but a robust order intake of $512.7 million, reflecting a 5.2% increase compared to the last year. The International Contract and Specialty segment reported net sales of $213.5 million, down 6.5%, yet orders increased by 2.7%.

Retail Segment Results

MillerKnoll's Global Retail segment experienced sales of $193.4 million, marking a 2.8% decline versus the same period last year, yet operational improvements have enhanced gross margins to 39.0%. The team emphasized operational efficiencies despite challenges in the housing market, actively working towards sustaining growth and market share.

Outlook for Future Growth

MillerKnoll is optimistic about the upcoming fiscal year, maintaining its adjusted earnings guidance at $2.20 per share. Expected net sales for the second quarter are projected to range between $950 million to $990 million, driven by anticipated macroeconomic improvements and increasing global contract demand. The guidance also accommodates the timing shift relating to promotional events impacting revenue recognition.

Strengthening Company Culture

With a firm focus on enhancing workplace culture, MillerKnoll has been actively recruiting new board members with backgrounds in technology, design, and hospitality as part of their strategy to navigate the evolving market landscape post-Knoll acquisition, thereby augmenting their growth potential.

Commitment to Sustainability and Innovation

MillerKnoll is dedicated to sustainability, with recent launches like the Eames Lounge Chair in bamboo-based leather alternatives bolstering their commitment to eco-friendly practices. The company aims to maintain high morale within its workforce by recognizing achievements and fostering an inclusive environment.

Frequently Asked Questions

What did MillerKnoll report for Q1 Fiscal 2025?

MillerKnoll reported net sales of $861.5 million for the first quarter of Fiscal 2025, down 6.1% year-over-year.

How did MillerKnoll's order intake perform in Q1?

Orders increased by 2.4%, driven mainly by strong performance in the Americas Contract segment.

What is the outlook for MillerKnoll for Q2 Fiscal 2025?

MillerKnoll expects net sales for the second quarter to be between $950 million and $990 million with ongoing growth momentum.

What measures has MillerKnoll taken to improve operational efficiency?

They implemented strategies focused on cost management and enhancing operational capabilities leading to improved gross margins.

How does MillerKnoll plan to foster company culture?

The company is focused on inclusive practices and enhancing employee morale, while actively recruiting diverse talents to strengthen leadership.

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