ZEELAND, Mich. — Completing its first quarter of fiscal 2025, MillerKnoll Inc. showed an increase in orders for the period ended Aug. 31, while sales dipped 6.1% for the period.
Orders increased 2.4% on a reported basis and 3.5% organically, year-over-year, led by a 5.2% increase in the Americas Contract segment. The company noted in its earnings release that demand trends in the Retail segment continue to reflect a slow housing market.
The company also noted that its backlog at the end of the quarter was $758 million, up 9.2% from last year and up 10.9% from the start of fiscal 2025.
“We expect improvements across all our businesses,” said Andi Owen, CEO. “The recent Fed decision adds certainty, and indicators we’ve been tracking are coming to fruition. We anticipate mortgage rates and the resale market in the US will buoy the retail business, with consistent order growth expected.”
Net sales for the quarter were $861.5 million, down from $917.7 in the year-ago period. Gross margin for Q1 was 39%, flat to the same quarter last year “despite the lower revenue level.”
Operating income for the period was $15.2 million, down from 40.3 million last year. The company showed a net loss of $1.2 million, down from earnings of 16.7 million in Q1 2024. On a per share basis, MillerKnoll showed a loss of 2 cents per share compared with earnings of 22 cents per share last year. Adjusted earnings per share for Q1 were 36 cents, compared with 37 cents last year.
As of Aug. 31, the company’s liquidity position reflected cash on hand and availability on its revolving credit facility totaling $488.4 million, ending the first quarter with a net debt-to-EBITDA ratio, of 2.84x.
Giving its outlook for the second quarter and the 2025 fiscal year, MillerKnoll is maintaining its earnings guidance of $2.20 per share for the year.
Noting that the holiday/cyber promotion period will fall in the second and third quarters rather than just the second quarter, MillerKnoll expects Q2 net sales to range between $950 million and $990 million. Adjusted diluted earnings per share for Q2 are expected to be between 51 cents and 57 cents per share.
See also:
a