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Aug 31, 2024

MillerKnoll Q1 2025 Earnings Report

Reported mixed results with order growth and margin improvement offset by sales decline.

Key Takeaways

MillerKnoll reported a decrease in net sales by 6.1% year-over-year, but orders increased by 2.4%. The company reported a diluted loss per share of $0.02 compared to earnings per share of $0.22 in the same period last year. Adjusted diluted earnings per share were $0.36 compared to $0.37 last year. The company is maintaining its full year adjusted earnings guidance of $2.20 per share.

Orders increased by 2.4% on a reported basis and 3.5% organically.

Ending backlog increased 9.2% from last year to $758.0 million.

Global Retail segment gross margin improved by 160 basis points due to operational improvements.

Americas Contract new orders increased 5.2% from the previous year.

Total Revenue
$862M
Previous year: $918M
-6.1%
EPS
$0.36
Previous year: $0.37
-2.7%
Gross Profit
$336M
Previous year: $358M
-6.1%
Cash and Equivalents
$210M
Previous year: $218M
-3.6%
Free Cash Flow
-$1.5M
Previous year: $111M
-101.4%
Total Assets
$4.02B
Previous year: $4.18B
-3.9%

MillerKnoll

MillerKnoll

MillerKnoll Revenue by Segment

Forward Guidance

The company expects net sales to range between $950 million to $990 million for the second quarter of fiscal year 2025. Adjusted diluted earnings in the second quarter are expected between $0.51 - $0.57 per share. The company is maintaining its full year adjusted earnings guidance of $2.20 per share.

Positive Outlook

  • Positive trends in global contract demand
  • Increased backlog position
  • Expected macro-economic improvements in the back half of this fiscal year.

Challenges Ahead

  • Shift in the holiday/cyber promotional period for our retail business.
  • Estimate this shift in timing will move between $17 million and $23 million of net sales from the second quarter into the third quarter of this fiscal year.
  • This is an important factor to consider when comparing quarterly sales and earnings estimates to our performance last fiscal year.