On June 26, 2024, MillerKnoll Inc (MLKN, Financial) released its 8-K filing reporting the financial results for the fourth quarter and full fiscal year 2024, which ended on June 1, 2024. MillerKnoll Inc, formerly Herman Miller Inc, researches, designs, manufactures, sells, and distributes interior furnishings globally. The company operates through three segments: Americas Contract, International Contract & Specialty, and Global Retail.
Performance Overview
MillerKnoll Inc (MLKN, Financial) reported net sales of $888.9 million for the fourth quarter, a 7.1% decrease year-over-year. Despite the decline in sales, the company achieved a gross margin of 39.6%, up 250 basis points from the same quarter last year. The company’s reported diluted earnings per share (EPS) for the quarter were $0.14, compared to break-even in the same period last year. Adjusted diluted EPS was $0.67, a 63.4% increase from $0.41 in the prior year, surpassing the analyst estimate of $0.47.
Financial Achievements and Challenges
For the full fiscal year 2024, MillerKnoll Inc (MLKN, Financial) reported net sales of $3.63 billion, an 11.2% decrease from the previous year. However, the company’s gross margin improved by 410 basis points to 39.1%. Full-year GAAP diluted EPS was $1.11, a significant increase from $0.55 in fiscal 2023. Adjusted diluted EPS for the year was $2.08, up 12.4% from $1.85 in the prior year, exceeding the annual estimate of $1.44.
Despite the positive earnings growth, the company faced challenges, including a decrease in net sales and the impact of restructuring measures. Special charges of $22.1 million were recorded in the fourth quarter due to workforce reductions and showroom consolidations. Additionally, non-cash pre-tax charges of $16.8 million were recognized for the impairment of the Knoll and Muuto trade names.
Segment Performance
The Americas Contract segment reported net sales of $416.6 million for the fourth quarter, down 12.2% year-over-year. However, new orders increased by 5.7% from the previous year. The International Contract and Specialty segment saw net sales of $245.0 million, a 3.2% increase year-over-year, driven by strong performance in regions such as India, the Middle East, China, and Korea. The Global Retail segment reported net sales of $227.3 million, a 7.2% decline year-over-year, but achieved an operating margin of 6.2%, compared to an operating margin loss of 4.4% in the prior year.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | % Change | FY 2024 | FY 2023 | % Change |
|---|---|---|---|---|---|---|
| Net Sales ($ millions) | 888.9 | 956.7 | -7.1% | 3,628.4 | 4,087.1 | -11.2% |
| Gross Margin (%) | 39.6% | 37.1% | N/A | 39.1% | 35.0% | N/A |
| Operating Expenses ($ millions) | 328.7 | 343.1 | -4.2% | 1,252.3 | 1,307.7 | -4.2% |
| Adjusted EPS ($) | 0.67 | 0.41 | 63.4% | 2.08 | 1.85 | 12.4% |
Analysis and Outlook
MillerKnoll Inc (MLKN, Financial) demonstrated resilience in fiscal 2024, achieving significant earnings growth despite a challenging sales environment. The company’s strategic initiatives, including cost synergies from the Knoll integration and operational efficiencies, contributed to improved margins and profitability. The positive order growth in the Americas Contract segment and strong performance in the International Contract and Specialty segment indicate a potential recovery in demand.
Looking ahead, MillerKnoll Inc (MLKN, Financial) is optimistic about fiscal year 2025, expecting net sales to exceed fiscal 2024 levels and adjusted diluted EPS to be in the range of $2.10 to $2.30. The company’s investments in showrooms, digital platforms, and product innovation are expected to drive growth and enhance customer experience.
For more detailed financial information and insights, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from MillerKnoll Inc for further details.
