MillerKnoll (NASDAQ:MLKN) reported stronger-than-expected earnings for its second quarter. Despite the upbeat performance, the furniture maker offered a cautious outlook for the coming months, causing its shares to drop by over 9% pre-market today.
For the quarter, the company reported adjusted earnings of $0.55 per share, edging past analyst expectations of $0.53. Revenue climbed 2.2% year-over-year to $970.4 million, exceeding the consensus estimate of $959.6 million. The results highlighted MillerKnoll’s ability to leverage its diverse portfolio of brands and global reach, even amid varying market challenges.
Segment performance painted a mixed picture. The Americas Contract division led the charge with a 5.9% increase in sales to $504.2 million, accompanied by a 4.4% uptick in orders. The International Contract & Specialty segment recorded modest growth of 2.1% in revenue, reaching $246.3 million, but orders declined by 6.5%. Meanwhile, Global Retail sales dropped 5.3% to $219.9 million, reflecting ongoing consumer headwinds. Despite revenue growth, gross margins narrowed slightly to 38.8%, down from 39.2% the prior year, largely due to shifts in product mix.
Looking ahead, MillerKnoll expects adjusted earnings of $0.41 to $0.47 per share for its fiscal third quarter, falling below the Street consensus estimate of $0.56. Revenue is forecasted between $903 million and $943 million, aligning closely with Wall Street projections of $927.2 million. The company also tightened its full-year adjusted EPS guidance to a range of $2.11 to $2.17, hovering near the $2.16 analyst forecast.