MillerKnoll Inc. has released its Fourth Quarter and Fiscal 2024 results. The company finished fiscal year 2024 strong with significant year-over-year earnings per share growth in the fourth quarter. By leveraging the advantage and scale of MillerKnoll's collective of brands, diversified business channels and global operations, the company's teams continued to drive substantial margin expansion while protecting strategic investments for growth.
The company is investing in MillerKnoll showrooms, our digital platforms, and enhanced tools to fuel their contract business and support our MillerKnoll dealers. They are also finding new ways to bring their brand collective together in both their dealers' showrooms and their own showrooms. Work is underway to open newly enhanced MillerKnoll spaces in London, New York and Los Angeles later in the year.
Fourth quarter and fiscal 2024 consolidated results
Consolidated net sales for the fourth quarter were $888.9 million, reflecting a decrease of 7.1% year-over- year and a decrease of 5.2% organically compared to the same period last year. Orders in the quarter of $933.0 million were up 1.1% as reported and 2.9% on an organic basis. Orders grew sequentially 12.4% from the previous quarter on a reported basis.
Gross margin in the quarter was 39.6%, which is 250 basis points higher than the same quarter last year. The year-over-year increase in gross margin was driven mainly by the realization of price and channel optimization strategies, cost synergies and continued reductions in freight and distribution costs.
During the fourth quarter, the Company recorded special charges of $22.1 million associated with previously announced restructuring measures, which included a workforce reduction and showroom consolidation. In addition, the Company recognised non-cash, pre-tax charges totaling $16.8 million related to the impairment of the Knoll and Muuto trade names. This charge was determined based on the Company's annual impairment review process.
For fiscal 2024, net sales were $3.6 billion, reflecting a year-over-year decrease of 11.2%. On an organic basis, net sales decreased by 8.1% year-over-year.
For fiscal 2024, gross margin and operating margin both improved year-over-year. Reported and adjusted gross margin increased 410 and 370 basis points, respectively. Reported operating margins were 160 basis points higher than last year, while adjusted operating margin increased 90 basis points year-over-year.
More information:
MillerKnoll
www.millerknoll.com