Shares of furniture maker MillerKnoll Inc. (MLKN) took a nosedive on Thursday, plunging over 16% in pre-market trading following the company's disappointing fiscal first-quarter results and lackluster guidance for the second quarter, citing challenges in the broader economic environment.
For the fiscal first quarter of 2025, MillerKnoll reported earnings of $0.36 per share, significantly missing analysts' consensus estimate of $0.42 per share by a wide margin of 14.29%. The company's revenue for the quarter also fell short, coming in at $861.5 million, compared to Wall Street's expectations of $889.3 million.
The company's CEO, Andrea Owen, acknowledged the impact of a tepid housing market on the company's Retail segment, which saw orders decline by 4.7% year-over-year. Additionally, MillerKnoll cited a shift in business and product mix as a factor weighing on its overall gross margin performance during the quarter.
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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