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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.
MillerKnoll
MillerKnoll
MillerKnoll Revenue by Segment
Revenue by Segment
Global Retail Revenue
CapyFin.com 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
- Interest and Other Expense, Net $18.6 million to $19.6 million
- Retail segment felt the impact of a slowdown in the housing market.