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Nov 30, 2024
MillerKnoll Q2 2025 Earnings Report
Reported a 2.2% increase in net sales, driven by International Contract & Specialty and Americas Contract, with a gross margin of 38.8%.
Key Takeaways
MillerKnoll reported a 2.2% increase in net sales to $970.4 million for the second quarter of fiscal year 2025. The company maintained a strong gross margin of 38.8% and returned approximately $93.1 million to shareholders through share repurchases and dividends in the first half of the fiscal year. Adjusted earnings per share were $0.55, compared to $0.59 in the same period last year.
Consolidated net sales increased by 2.2% year-over-year, driven by International Contract & Specialty and Americas Contract segments.
Gross margin remained strong at 38.8%.
Approximately $93.1 million was returned to shareholders through share repurchases and dividends in the first half of fiscal 2025.
Americas Contract sales and orders were up mid-single-digits year-over-year.
MillerKnoll
MillerKnoll
MillerKnoll Revenue by Segment
Revenue by Segment
Global Retail Revenue
CapyFin.com Forward Guidance
The company provided its outlook for the third quarter and full year fiscal 2025, anticipating improving demand trends and reflecting the shift of approximately $12 million in Global Retail net sales from the second to the third quarter due to the timing of the holiday/cyber promotional period.
Positive Outlook
- Improving demand trends in most markets are expected.
- Full year guidance reflects sales and EPS growth over fiscal 2024.
- New product launches in Spring 2025 are expected to be up over 100% compared to Spring 2024.
- Expect to open two new retail locations in the third quarter.
- Strength in the complementary concierge design services.
Challenges Ahead
- Fiscal third quarter is expected to be impacted by typical seasonal softness in Americas and International Contracts businesses.
- Third quarter is expected to be impacted by the timing of the Chinese New Year holiday.
- Macroeconomic improvements are slower than expected.
- Orders were lower than expected in the first half of the year.
- New and existing home sales continue to be soft.