Latest news with #MLKN
Yahoo
2 hours ago
- Business
- Yahoo
MLKN Q2 Deep Dive: Strategic Pricing and Retail Expansion Mark Quarter
Office furniture manufacturer MillerKnoll (NASDAQ:MLKN) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 8.2% year on year to $961.8 million. On top of that, next quarter's revenue guidance ($919 million at the midpoint) was surprisingly good and 3.2% above what analysts were expecting. Its non-GAAP profit of $0.60 per share was 37.4% above analysts' consensus estimates. Is now the time to buy MLKN? Find out in our full research report (it's free). Revenue: $961.8 million vs analyst estimates of $913.8 million (8.2% year-on-year growth, 5.3% beat) Adjusted EPS: $0.60 vs analyst estimates of $0.44 (37.4% beat) Adjusted EBITDA: $89.3 million vs analyst estimates of $85.94 million (9.3% margin, 3.9% beat) Revenue Guidance for Q3 CY2025 is $919 million at the midpoint, above analyst estimates of $890.7 million Adjusted EPS guidance for Q3 CY2025 is $0.35 at the midpoint, above analyst estimates of $0.35 Operating Margin: 5.7%, down from 7.6% in the same quarter last year Backlog: $761.3 million at quarter end Market Capitalization: $1.19 billion MillerKnoll's second quarter results drew a strong, positive reaction from the market, as management credited both robust demand and effective execution across its contract and retail businesses. The company saw meaningful order growth in North America, supported by customer urgency ahead of planned pricing actions tied to new tariffs. CEO Andrea Owen noted the impact of new flagship showrooms and expanded product launches, stating these moves 'elevated how we present the collective strength of our brands and products to customers.' Operationally, improved customer engagement and targeted innovation were key factors behind the company's sales momentum. Looking ahead, MillerKnoll's guidance is shaped by the anticipated effects of tariff-related pricing actions and a continued focus on retail expansion. Management expects a near-term margin impact from orders placed before surcharges took effect, but believes pricing adjustments will offset these costs over the next two quarters. CEO Andrea Owen emphasized planned investments in new store openings and expanded product assortments, while CFO Jeff Stutz highlighted ongoing cost management and pricing strategies as central to the company's outlook. The company is also closely monitoring macroeconomic factors and expects improved performance as market conditions stabilize. Management attributed quarterly performance to strong North America contract orders, proactive pricing ahead of tariffs, and continued investment in product and retail expansion. Tariff-driven order pull forward: North America contract segment benefited from customers accelerating orders in advance of announced tariff surcharges and price increases, resulting in mid-teens order growth for the period. Management estimated $55–$60 million of demand was pulled forward, temporarily boosting backlog and sales. New product launches and showrooms: The launch of over 30 new products across brands and the opening of new flagship showrooms in Chicago, London, and New York increased customer engagement and brand visibility. These initiatives were described as driving higher customer visits and raising the company's profile in key markets. Retail segment expansion: The company opened four new retail stores during the year and plans to open an additional 10–15 in the next year. Management sees significant 'white space' opportunity, noting that MillerKnoll is under-represented compared to competitors in several geographies, with each new store driving incremental e-commerce revenue and brand awareness. Sectoral and regional strength: Growth was particularly strong in North America contract, healthcare, and public sector verticals, as well as in European and Latin American markets. The company also highlighted continued resilience in higher education and healthcare, which are considered less sensitive to economic downturns. Gross margin dynamics: Gross margin improved sequentially but was modestly lower year over year due to tariff-related costs. Management expects further near-term margin pressure as tariff costs are realized before price increases fully take effect, but projects recovery in the second half of the year. MillerKnoll expects future results to be shaped by tariff mitigation, the pace of retail expansion, and broader macroeconomic trends. Tariff mitigation and pricing actions: Management expects tariffs to weigh on margins over the next two quarters, as many orders in backlog were placed before surcharges. However, as price increases are realized in new contracts, the company anticipates margin recovery in the second half of the year, with CFO Jeff Stutz stating, 'we believe our collective mitigation actions to fully offset these costs as we move into the second half.' Retail footprint growth: The ongoing rollout of new Design Within Reach and Herman Miller stores is expected to support long-term revenue growth, though upfront costs will temporarily pressure retail segment margins. President of Global Retail Debbie Propst noted that new stores typically reach profitability within their first year, with the operating income margin expected to improve as the fleet matures and the housing market recovers. Demand indicators and macro factors: Management highlighted continued strength in leading indicators such as project funnel additions and pricing requests, particularly in healthcare and public sector verticals. They remain cautiously optimistic about a recovery in office demand and are watching for sustained improvement in commercial real estate activity. Looking forward, the StockStory team is closely monitoring (1) the pace at which pricing actions offset tariff-related margin pressure, (2) the successful opening and ramp of new retail stores and their impact on segment profitability, and (3) continued strength in healthcare and public sector verticals. Execution on product innovation and the stabilization of commercial office demand will also be key markers of progress. MillerKnoll currently trades at $19.34, up from $17.65 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 hours ago
- Business
- Yahoo
MillerKnoll Inc (MLKN) Q4 2025 Earnings Call Highlights: Strong Performance and Strategic Expansion
Adjusted Earnings Per Share (EPS): $0.60 for Q4, outperforming guidance. Consolidated Net Sales: $962 million in Q4, up 8.2% year-over-year. New Orders: $1.04 billion in Q4, up 11.1% year-over-year. Consolidated Gross Margin: 39.2% in Q4, up 130 basis points sequentially. Cash Flow from Operations: $71 million in Q4. Liquidity: $576 million at the end of Q4. Net Debt to EBITDA Ratio: 2.88 turns. North America Contract Segment Sales: $496 million in Q4, up nearly 13% year-over-year. International Contract Segment Sales: $186 million in Q4, up 6.9% year-over-year. Global Retail Segment Sales: $280 million in Q4, up 2.2% year-over-year. Full Fiscal Year Net Sales: $3.67 billion. Full Fiscal Year Adjusted EPS: $1.95. Capital Expenditures: $107.6 million for fiscal 2025; expected $120-$130 million for fiscal 2026. Q1 Fiscal 2026 Net Sales Guidance: $899 million to $939 million. Q1 Fiscal 2026 Gross Margin Guidance: 37.1% to 38.1%. Q1 Fiscal 2026 Adjusted EPS Guidance: $0.32 to $0.38. Warning! GuruFocus has detected 3 Warning Signs with MLKN. Release Date: June 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MillerKnoll Inc (NASDAQ:MLKN) reported strong Q4 results, significantly exceeding expectations with adjusted earnings of $0.60 per share. Consolidated net sales in Q4 were $962 million, up 8.2% year-over-year, driven by strength across all business segments. The company opened new flagship locations in London and New York, enhancing customer interactions and increasing visits. MillerKnoll Inc (NASDAQ:MLKN) introduced over 30 new products at Design Days 2025, showcasing innovation and design leadership. The company plans to expand its retail footprint by opening 10 to 15 new stores in fiscal 2026, aiming to double its store presence over the next several years. Tariff-related costs are expected to negatively impact margins in the near term, with a $9 million to $11 million reduction in Q1 earnings. The retail segment's operating margin decreased to 5.3% in Q4, impacted by new store opening costs and unfavorable product mix. Order growth in North America was partially driven by pull-forward activity due to tariff surcharges, which may affect future order levels. The company faces a dynamic macroeconomic environment, with cautious optimism in both North American and international markets. MillerKnoll Inc (NASDAQ:MLKN) anticipates a two-quarter impact from tariff-related pricing actions, affecting profitability in Q1 and Q2 of fiscal 2026. Q: Can you provide insight into the pull-forward effect from pricing actions and how it has impacted order growth in the current quarter? A: Jeffrey Stutz, Chief Financial Officer, explained that they are down mid-single digits in order entry year-over-year, which aligns with expectations due to the pull-forward effect seen in the fourth quarter. The expectation is to resume growth as the quarter progresses. Q: What is the confidence level in the aggressive expansion of retail stores given the current demand environment, and how long does it take for a store to mature? A: Andrea Owen, CEO, expressed confidence in the expansion, noting that the company is under-stored compared to competitors and is filling a market need. Debbie Propst, President of Global Retail, added that new stores become profitable within the first year, with Herman Miller stores maturing faster due to their smaller footprint. Q: Can you clarify the estimated pull-forward amount in North America and its impact on future quarters? A: Jeffrey Stutz confirmed the pull-forward was estimated at $55 million to $60 million, primarily from North America. John Michael, President of Americas Contract, noted that significant orders will ship in Q1 and Q2, with leading indicators still pointing in the right direction. Q: How will the pull-forward and tariffs impact profitability, and how long will this dynamic last? A: Andrea Owen stated that the impact is typically a two-quarter dynamic, with the biggest impact in Q1, lessening in Q2, and healthy coverage expected in Q3 and Q4. Q: What are the expectations for free cash flow and leverage levels in the new fiscal year? A: Jeffrey Stutz highlighted a focus on paying down debt and building out new stores, with a prudent approach to managing debt levels amid geopolitical uncertainty. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
20 hours ago
- Business
- Yahoo
MillerKnoll (MLKN) Beats Q4 Earnings and Revenue Estimates
MillerKnoll (MLKN) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +71.43%. A quarter ago, it was expected that this furniture maker would post earnings of $0.44 per share when it actually produced earnings of $0.44, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. MillerKnoll, which belongs to the Zacks Furniture industry, posted revenues of $961.8 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 6.38%. This compares to year-ago revenues of $888.9 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. MillerKnoll shares have lost about 21.6% since the beginning of the year versus the S&P 500's gain of 3.6%. While MillerKnoll has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for MillerKnoll was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $873.2 million in revenues for the coming quarter and $1.91 on $3.67 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Furniture is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Bassett Furniture (BSET), another stock in the same industry, has yet to report results for the quarter ended May 2025. This furniture seller is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +179%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Bassett Furniture's revenues are expected to be $81.2 million, down 2.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MillerKnoll, Inc. (MLKN) : Free Stock Analysis Report Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 hours ago
- Business
- Yahoo
3 Stocks Under $50 with Open Questions
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they're typically more established than penny stocks. But their headline prices don't guarantee quality, and investors should exercise caution as some have shaky business models. This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here are three stocks under $50 to swipe left on and some alternatives you should look into instead. Share Price: $16.91 Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide. Why Is MLKN Risky? Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.8% annually over the last two years Earnings per share fell by 11.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable 4.7 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position MillerKnoll's stock price of $16.91 implies a valuation ratio of 6.9x forward P/E. Read our free research report to see why you should think twice about including MLKN in your portfolio, it's free. Share Price: $40.21 Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE:KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers. Why Does KD Worry Us? Products and services are facing significant end-market challenges during this cycle as sales have declined by 6% annually over the last four years Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital Negative returns on capital show that some of its growth strategies have backfired Kyndryl is trading at $40.21 per share, or 19.4x forward P/E. Dive into our free research report to see why there are better opportunities than KD. Share Price: $13.75 Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE:RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform. Why Does RKT Fall Short? Annual sales declines of 4% for the past five years show its products and services struggled to connect with the market during this cycle Earnings per share have contracted by 53.4% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance High net-debt-to-EBITDA ratio of 12× increases the risk of forced asset sales or dilutive financing if operational performance weakens At $13.75 per share, Rocket Companies trades at 3x forward P/B. To fully understand why you should be careful with RKT, check out our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
The Star
2 days ago
- General
- The Star
MLKN: Negative perception of National Service must be changed
PEKAN: Efforts must be made to counter the negative perception of the National Service Training Programme (PLKN), and parents have a role to play in promoting their children's involvement, said Jeneral (Rtd) Tan Sri Dr Abdul Aziz Zainal. The National Service Training Council (MLKN) chairman said those who join the programme would benefit in many ways, particularly in shaping a strong personal identity. In addition, he said the programme offers added value to trainees as it includes basic military training while assuring parents that their children's welfare would be well taken care of throughout the 45-day period. 'All their needs are taken care of throughout the programme, with RM3,150 allocated per trainee, not including travel expenses. I hope parents will help raise awareness and encourage their children. PLKN seeks to guide them in the right direction. 'Those who do not want to join may still be affected by past stigma. Forget the past; the current programme brings benefits and has been improved for the better,' he said at a press conference after the PLKN 3.0 Series 2/2025 Passing-Out Parade yesterday, Bernama reported. Abdul Aziz said more than RM400mil had been allocated to make the programme a success, including improvements to camp facilities to ensure a more comfortable training environment for the trainees. A total of 257 male trainees completed the training, which began on May 11 at the 505th Territorial Army Regiment Camp here, with Bartholomew Thierry Timothy from Papar, Sabah, named the best trainee. For Timothy, 18, being away from his family for 45 days proved worthwhile when he was selected as the best trainee, adding that PLKN had instilled discipline and punctuality in him. The third of four siblings, who will pursue a foundation in science at Universiti Malaysia Sarawak (Unimas), said the nationalism module and basic military training had contributed to building his identity as a quality Malaysian with a more positive outlook. 'It's an honour to be chosen as the best trainee. In the beginning, I had trouble adjusting, especially with punctuality, but I've improved and become a more confident person,' he said. Zarimi Isa, 50, a former soldier and father of trainee Muhammad Hakim, 20, said parents should not hesitate to send their children for the programme, which he described as highly beneficial. 'Don't listen to the negative comments about PLKN. It's a good programme for the younger generation, and with the training lasting just 45 days, I think it's still relevant,' said the father of five.
