By Katherine Hamilton
MillerKnoll cut its adjusted profit guidance for the year, citing a slow improvement in the broader economy and lower-than-expected orders through the first two quarters.
The Zeeland, Mich.-based furniture company on Wednesday reported a profit of $34.1 million, or 49 cents a share, in the three months ended Nov. 30, compared with $33.5 million, or 45 cents a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were 55 cents, ahead of the 53 cents forecast by analysts, according to FactSet.
Revenue rose 2.2% year over year to $970.4 million. Analysts surveyed by FactSet forecast revenue of $960 million.
MillerKnoll lowered its outlook for 2025 adjusted earnings per share to between $2.11 and $2.17, down from $2.20 a share. The company said it logged fewer orders in the first half of the year than it had expected.
The company said its holiday promotional period fell across both its second and third quarters this year, while it fit fully in the second quarter last year, which meant lower orders and sales numbers during this most recent quarter. Due to the timing shift, about $12 million in net sales will occur in its third quarter, the company said.
Gross margin was 38.8%, down slightly from last year, primarily due to product mix. Increased spending on marketing and compensation and benefits contributed to higher operating expenses, which rose about $3 million from last year.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
December 18, 2024 17:18 ET (22:18 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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