MillerKnoll (NASDAQ:MLKN) fell Thursday. The furniture company behind the Noguchi table and Eames office chairs beat fiscal fourth-quarter earnings expectations. MillerKnoll posted adjusted earnings of 41 cents per share on revenues of $957 million. Analysts polled by Refinitiv had expected per-share earnings of 39 cents on revenues of $946 million.
Consolidated net sales for the fourth quarter were $956.7 million, reflecting a decrease of 13.1% on a reported basis and a decrease of 12.0% organically compared to the same period last year. Orders in the quarter of $922.4 million were 9.0% lower on a reported basis and 7.8% lower organically year-over-year. This decline is an improvement compared to the 17.6% organic decline posted in the third quarter as we are lapping record post pandemic activity from fiscal year 2022 while also sequentially increasing orders quarter-over-quarter.
Gross margin in the quarter was 37.1% as reported and 37.0% on an adjusted basis, which is 230 basis points and 220 basis points higher than the same time last year, respectively. The year-over-year increase in both reported and adjusted gross margin was mainly driven by the realization of price optimization strategies and benefits from integration synergies.
As of June 3, the company’s liquidity position reflected cash on hand and availability on its revolving credit facility totaling $507.7 million . During the fourth quarter, the business generated $92.5 million in cash flow from operations and repaid $48.4 million of debt as part of our capital deployment priority of maintaining a strong balance sheet.
MLKN shares took on $1.11, or 6.7%, to $17.57.
