MillerKnoll Inc. today reported its first-quarter fiscal 2025 results, ending August 31, 2024.
Financial highlights include an orders increase by 2.4% (3.5% organically), led by a 5.2% growth in the Americas Contract segment. The ending backlog was $758.0 million, up 9.2% from last year; and the gross margin in the Global Retail segment improved by 160 basis points due to operational improvements.
First Quarter financial results showed a net sales of $861.5 million, down 6.1% year-over-year; a gross margin of 39.0% and a decrease of adjusted operating expenses by 5.2%.
MillerKnoll finished the first quarter with momentum and order growth. Demand is improving and its contract business is seeing the return of larger projects in the Americas and Asia. Customers are also requesting shipment dates on new orders further into the future, on average, compared to previous years.
While demand trends in the Retail segment continue to reflect the impact of a tepid housing market, the investments made in platform operational capabilities are not only driving significant margin improvements, but also position the company to support profitable growth plans as the macro-economic backdrop improves.
First Quarter Fiscal 2025 results by segment
Americas Contract
For the first quarter, Americas Contract net sales of $454.6 million were down 7.3% on a reported basis and down 7.0% organically compared to the same period last year. New orders totalled $512.7 million and were up 5.2% from the previous year and increased sequentially by 6.8% from the fourth quarter of fiscal 2024.
International contract and specialty
International Contract and Specialty segment net sales in the first quarter of $213.5 million were down 6.5% on a reported basis and down 6.3% on an organic basis year-over-year.
Global retail
For the first quarter, our Global Retail segment sales totalled $193.4 million. This represents a year-over-year decline of 2.8% on a reported basis and was essentially flat on an organic basis.
Additional highlights from Q1
Building engaging showroom experiences remains a priority for MillerKnoll. During the first quarter, the company held successful client engagement events in its Chicago showrooms during Design Days. They continue to enhance showrooms to feature the full breadth of our collective of brands and recently opened new MillerKnoll showrooms in London and New York.
They also demonstrated our ongoing commitment to designing for the future with new sustainable solutions, including the Eames Lounge Chair and Ottoman in a bamboo-based leather alternative.
In support of our long-term growth plans, they evaluated the composition of the board of directors given the retirement of two directors since 2022.
Second Quarter and Fiscal 2025 outlook
As it relates to the second quarter of fiscal year 2025, the company expects net sales to range between $950 million to $990 million. Adjusted diluted earnings in the second quarter are expected between $0.51 - $0.57 per share.
More information:
MillerKnoll
www.millerknoll.com