monsitj/iStock via Getty Images
MillerKnoll (NASDAQ:MLKN) stock price jumped 18% as the company reported Q1 earnings. The company showed a 15% fall in topline revenue to $917.7M, beating estimates by $21.8M. The relative decline in organic orders is an improvement compared to the 7.8% Y/Y organic decline posted in Q4 FY2023.
Significant profit improvement in the Americas Contract segment delivered reported and adjusted Y/Y operating margin expansions of 460 and 570 bps respectively. Organic order growth of 2.1% for the Americas Contract segment over the prior year.
Gross margin was 39.0%, which is 450 bps higher than the same time last year. The Y/Y increase in gross margin was mainly driven by the realization of price optimization strategies, moderating input costs, and benefiting from our ongoing integration efforts.
Operating margin for the quarter was 4.4%, compared to 4.7% in the same quarter last year.
The liquidity position reflected cash on hand and availability on our revolving credit facility, totaling $561.3M.
Non-GAAP EPS of $0.37 beats estimates by $0.11.
For FQ2, the company expects net sales to range between $950M-990M and adjusted EPS to be between $0.52 to $0.58 per share.
For FY, the company increased guidance and expects to generate adjusted EPS in the range of $1.85 and $2.15 per share.
