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Mar 02, 2024

MillerKnoll Q3 2024 Earnings Report

MillerKnoll reported third quarter fiscal 2024 results, with gross margin improvements and cost synergy realization, but faced sluggish demand due to macroeconomic conditions.

Key Takeaways

MillerKnoll reported a decrease in net sales by 11.4% to $872.3 million, but gross margin improved by 450 basis points. The company captured $153 million in run-rate cost synergies related to the Knoll integration. Adjusted earnings per share were $0.45, compared to $0.54 in the same period last year.

Consolidated gross margin improved 450 basis points year-over-year, with expansion in all three segments.

Net sales decreased by 11.4% on a reported basis and 10.1% organically.

Orders decreased by 6.2% on a reported basis and 4.7% organically.

Achieved $153 million of run-rate cost synergies related to the Knoll integration.

Total Revenue
$872M
Previous year: $985M
-11.4%
EPS
$0.45
Previous year: $0.54
-16.7%
Total Orders
$830M
Gross Profit
$337M
Previous year: $336M
+0.4%
Cash and Equivalents
$224M
Previous year: $217M
+3.0%
Free Cash Flow
$43.9M
Previous year: $55.4M
-20.8%
Total Assets
$4.1B
Previous year: $4.38B
-6.6%

MillerKnoll

MillerKnoll

MillerKnoll Revenue by Segment

Forward Guidance

MillerKnoll expects net sales in the fourth quarter of fiscal 2024 to range between $880 million and $920 million, with adjusted diluted earnings per share between $0.49 and $0.57. The company anticipates full year adjusted diluted earnings per share of between $1.90 and $1.98.

Positive Outlook

  • Mid-point of EPS range implies 29% YOY growth
  • Gross margin % 38.1% to 39.1%
  • Effective tax rate 21.0% to 23.0%

Challenges Ahead

  • Net sales $880 million to $920 million
  • Sluggish demand
  • Tepid near-term macro-economic backdrop
  • Operating expenses $274 million to $284 million
  • Interest and other expense, net $16 million to $17 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income