MillerKnoll (NASDAQ: MLKN) shares were up in Thursday trading, after reporting better-than-expected profit and revenue for its latest quarter. The furniture maker was able to make up for a 13% decline in orders with higher prices.
Sales growth proved to be f 4% over the prior year, up 8% organically
Second-quarter consolidated net sales were $1.07 billion, reflecting an increase of 4.0% on a reported basis and 7.6% organically compared to the prior year. Orders in the quarter of $1.01 billion were 12.5% lower on a reported basis and decreased 9.2% organically year-over-year. In addition to current economic uncertainty, the decrease in orders this quarter reflects higher orders experienced in the prior year as a result of pandemic-driven pent-up demand for projects associated with return to office.
Gross margin in the second quarter of 34.5% was 10 basis points higher than the same quarter last year on a reported basis and down 40 basis points on an adjusted basis. The year-over-year decrease in adjusted gross margin was primarily due to higher commodity costs and other inflationary pressures, as well as near-term incremental inventory-related costs in our Global Retail business.
Diluted earnings per share was $0.21 for the quarter, compared to a diluted loss per share of $0.02 for the same period last year. Adjusted diluted earnings per share were $0.46 for the quarter, compared to $0.54 for the same period last year.
MLKN shares improved 24 cents, or 1.3%, to $18.51.
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