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Dec 03, 2022
MillerKnoll Q2 2023 Earnings Report
Reported a 4% sales increase and captured $101 million in run-rate cost synergies.
Key Takeaways
MillerKnoll reported a 4% increase in net sales to $1.07 billion and demonstrated operating margin expansion in the Americas Contract and International Contract & Specialty segments. The company has captured $101 million of run-rate cost synergies to date and increased the targeted run-rate cost synergies from $120 million to $140 million within three years of the Knoll acquisition.
Sales growth of 4% over the prior year, up 8% organically.
Year-over-year operating margin expansion in the Americas Contract and International Contract & Specialty segments.
$101 million of run-rate cost synergies captured to date.
Increased targeted run-rate cost synergies from $120 million to $140 million within three years of the Knoll acquisition.
Revenue by Segment
Forward Guidance
Net sales in the third quarter of fiscal year 2023 are expected to range between $980 million to $1,020 million. Adjusted earnings per share are anticipated to be between $0.40 to $0.46 for the quarter.
Positive Outlook
- Realize annualized expense reductions of approximately $30 million to $35 million.
- Savings will begin to be realized during the third quarter and be more fully realized in the fourth quarter.
- Gross Margin % 35.2% to 36.2%
- Company Guidance Q3 FY2023 Net Sales $980 million to $1,020 million
- Effective Tax Rate 22% - 24%
Challenges Ahead
- Mid-point of revenue guidance implies a revenue decrease of 2.9% compared to the same quarter last fiscal year on a reported basis and a decrease of 0.7% on an organic basis.
- Adjusted earnings per share are anticipated to be between $0.40 to $0.46 for the quarter.
- Operating Expenses $288 million to $298 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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