MillerKnoll reports weaker-than-expected results for Q2
- MillerKnoll's Q2 EPS and revenue comes in shy of Wall Street estimates.
- The furniture company expects a 74% growth in revenue this quarter.
- Shares of the U.S. firm fell 7.0% in after-hours trading on Tuesday.
Shares of MillerKnoll Inc (NASDAQ: MLKN) fell 7.0% in after-hours trading after the furniture maker reported quarterly results that came in shy of Wall Street estimates.
Key takeaways from MillerKnoll’s Q3 report
MillerKnoll said it lost $3.4 million in its fiscal second-quarter that translates to 5 cents per share. In the same period last year, it had posted $0.3 million in loss. On an adjusted basis, the American company earned 51 cents per share.
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The furniture company generated $1.03 billion in net sales versus the year-ago figure of $626.3 million. According to FactSet, experts had forecast 56 cents in EPS on $1.04 billion in net sales.
MillerKnoll took a $50 million hit to net sales in the recent quarter due to labour shortages and the global supply chain issues. It valued expenses related to acquisition and integration at $52.4 million.
Other notable figures include a 77% year-over-year increase in costs to $675.7 million. At $294.4 million, operating expenses came in 72% higher than last year.
CEO’s remarks and future outlook
The Michigan-based company changed its name from Herman Miller Inc to MillerKnoll Inc on November 1st, after completing the acquisition of Knoll Inc in July. Quarterly orders were up 83.9%, thanks to strong demand from every segment. As per CEO Andi Owen:
We’ll deliver cost synergies target of $100 million within two years of closing. Our teams also identified additional synergy opportunities, and we now expect to increase run-rate savings to $120 million by the end of year three. We are confident in our ability to drive continued growth and shareholder value.
For the current quarter, MillerKnoll forecasts up to 30 cents of EPS and an annualised growth of roughly 74% in revenue.