Shares of MillerKnoll Inc. (MLKN) plunged in pre-market trading on Thursday after the furniture maker reported disappointing first-quarter results and issued weak guidance for the second quarter, citing challenges in the broader macroeconomic environment.
The company reported Q1 earnings of $0.36 per share, missing the consensus estimate of $0.42 per share by a significant margin of 14.29%. Revenue for the quarter also fell short, coming in at $861.5 million compared to analysts' expectations of $889.3 million.
MillerKnoll's CEO Andrea Owen acknowledged the impact of a tepid housing market on the company's Retail segment, as well as a shift in business and product mix that weighed on overall gross margin performance. However, the company highlighted several initiatives to support its contract business and meet evolving client needs, including the launch of new flagship locations in London and New York, as well as the introduction of dozens of new products and sustainable materials.
Looking ahead, MillerKnoll provided a somewhat subdued outlook, forecasting Q2 earnings per share in the range of $0.51 to $0.57, below the consensus estimate of $0.61. The company's revenue guidance for the second quarter also fell short of expectations, with a projected range of $950 million to $990 million, compared to the $948.12 million estimate.
Despite the challenges faced in the first quarter, MillerKnoll expressed optimism about the broader economic environment, citing the recent Federal Reserve interest rate cut as a potential catalyst for boosting consumer confidence and supporting the retail business in the coming quarters.
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