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Feb 27, 2021
MillerKnoll Q3 2021 Earnings Report
Herman Miller's Q3 2021 performance was marked by retail and international sales growth, which partially offset the impact of near-term demand pressures in North America Contract. The retail segment experienced accelerated momentum, achieving substantial sales and order growth, alongside consolidated operating margin expansion compared to the previous year.
Key Takeaways
Herman Miller reported a decrease in consolidated net sales by 11% to $590.5 million, but experienced strong growth in its Retail segment with a 63% increase in sales. The company's operating margin expanded, and earnings per share increased by 9.4% on a reported basis.
Retail segment experienced accelerated momentum with sales growth of 63% and order growth of 81%.
North America Contract segment was impacted by the pandemic, with sales and orders down 35% and 38% respectively.
International business delivered net sales growth of 6% on a reported basis.
Consolidated operating margin increased by 40 basis points year-over-year, driven by gross margin expansion and cost management.
MillerKnoll
MillerKnoll
MillerKnoll Revenue by Segment
Revenue by Segment
N. America Contract Revenue
CapyFin.comInternational Contract Revenue
CapyFin.com Forward Guidance
The company anticipates increased demand in the contract sales funnel during the second half of calendar 2021, while also expecting commodity pressures, especially associated with steel prices. They are reinstating employer retirement contributions, which were temporarily suspended for the first three quarters of fiscal 2021. Ongoing cost reduction initiatives and planned price increases are expected to offset these pressures over time.
Positive Outlook
- Increased demand expected as the global contract market begins to recover.
- Sustained momentum in the Retail business.
- Global, multi-channel distribution model puts the company in a strong position to drive growth.
- Contract sales funnel pointing to increased demand in the back half of calendar 2021.
- Ongoing cost reduction initiatives and a planned price increase will help offset the pressures over time.
Challenges Ahead
- Overall global demand environment remains uncertain.
- Potential pace of recovery remains uncertain.
- Experiencing commodity pressures, especially associated with steel prices.
- Reinstating employer retirement contributions, which were temporarily suspended for the first three quarters of fiscal 2021.
- Impact of COVID-19 remains a risk.
Revenue & Expenses
Visualization of income flow from segment revenue to net income