MillerKnoll, Inc. (MLKN) shares took a dip after the company announced its first-quarter financial results, which missed analysts’ predictions. The company reported earnings of 36 cents per share, falling short of the anticipated 40 cents. Revenue also missed the mark, coming in at $861.50 million compared to the projected $889.3 million, representing a 6.12% decrease from the same period last year.
Despite the disappointing figures, there were some bright spots. Orders in the first quarter increased by 2.4% on a reported basis and 3.5% organically compared to the previous year, driven by a 5.2% growth in Americas Contract. The ending backlog also climbed to $758 million, up 9.2% from last year and 10.9% from the start of fiscal 2025. Notably, the Global Retail segment experienced a positive development, with gross margin improving by 160 basis points thanks to continued operational enhancements.
In a letter to shareholders, MillerKnoll acknowledged the impact of a sluggish housing market on the Retail segment’s demand. However, the company emphasized the effectiveness of its operational improvements, which are not only driving significant margin gains but also positioning them for profitable growth as the broader economic outlook improves. They believe their diverse brand portfolio, varied business channels, and global reach are key strengths.
Looking ahead, MillerKnoll anticipates second-quarter earnings between 51 and 57 cents per share, falling short of the estimated 61 cents. Revenue is projected to be between $950 million and $990 million, slightly below the estimated $948.12 million.
As of Thursday’s after-hours trading, MillerKnoll shares were down 2.62% at $26.75, according to Benzinga Pro.
