Takeaways
- MillerKnoll reported better-than-expected profits and sales and raised its forecast for higher demand as workers return to the office.
- The furniture company said the gains were particularly strong in North America.
- The news was out that MillerKnoll shares are skyrocketing to their highest level since March.
Shares of MillerKnoll (MLKN) rose more than 28% in early trading Wednesday at 11:30 a.m. ET after the furniture maker reported better-than-expected results and upgraded its forecast as it benefits from employees returning to work. office following the work-from-home boom caused by COVID-19. pandemic.
MillerKnoll reported earnings per Shares (EPS) of $0.37 for the first quarter of fiscal 2024, with revenue down 14.9% to $917.7 million. Both exceeded estimates. The company added that gross margin improved by 450 basis points (bps) to 39%, with progress across its three segments.
The Americas Contract segment recorded significant gains in reported and adjusted operating margin, up 460 basis points and 570 basis points, respectively. Andi Owen, CEO of MillerKnoll, and Jeff Stutz, CFO, explained that “expanding our presence in resilient verticals and the increasing shift of North American businesses toward return-to-office practices is yielding results. positive”.
Owen and Stutz noted that Although “Economic uncertainty persists in parts of our business, we maintain an overall optimistic outlook.” Miller Knoll raised its full-year EPS outlook to $1.85 to $2.15, up from $1.70 to $2.00.
MillerKnoll shares hit their highest level since March following the news.
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Source: investopedia.com