Sales fall for MillerKnoll in Q4, but increased orders boost outlook

Sales fall for MillerKnoll in Q4, but increased orders boost outlook

ZEELAND, Mich. – Office and contract furniture giant MillerKnoll reported $888.9 million in fourth quarter net sales, a 7.1% decline from the same time last year. The company has reported several declines in a row, including an 11% dip last quarter and an 11.4% decline in the second quarter.

Sales fell in two of the company’s three segments – Americas Contract (-12.2%) and Global Retail (-7.2%) – while rising in International Contract (+3.2%). Last quarter, sales fell in all three.

There were some positives. Orders rose 1.1% for the quarter overall, while rising more prominently in Americas Contract, climbing 5.7% year-over-year and 14.3% from last quarter. Gross margin also improved, rising 250 base points to 39.6%. Margin gains were attributed to the realization of price and channel optimization strategies, cost synergies and continued reduction in freight and distribution costs. Last quarter, gross margin improved 450 basis points to 38.6%.

For the full year, net sales fell 8.4%.

The company was optimistic in its earnings report, particularly in its contract business.

“There is accelerated activity in our contract business,” it wrote. “Earlier this month, we met with dealers and customers at Design Days, an annual large trade show in Chicago. Appointments at our showrooms were up year-over-year and importantly, there was a shift in dialogue from theoretical return to office ideas to specific project needs. During the show, we launched over 30 new products, capturing industry awards.

“We are investing in MillerKnoll showrooms, our digital platforms, and enhanced tools to fuel our contract business and support our MillerKnoll dealers. We are also finding new ways to bring our brand collective together in both our dealers showrooms and our own showrooms. Work is underway to open newly enhanced MillerKnoll spaces in London, New York and Los Angeles later in the year.

The company’s outlook is positive.

“Overall, we are optimistic about fiscal year 2025 as there is increased activity and interest in the contract space. Traffic at recent trade shows around the globe, including NeoCon in the U.S., Salone di Mobile in Italy, and 3daysofdesign in Copenhagen have improved and are close to pre-COVID levels. Also, negative trends in home sales are beginning to ease. The National Assn. of Realtors reported the year-over-year decline in existing home sales, including luxury homes, flattened in April. With a direct correlation between luxury home sales and demand for home furnishings, we are well positioned to benefit as this activity accelerates.”

See also:

  • MillerKnoll reports decline in Q3 sales; reduces workforce
  • MillerKnoll reports sales decline, reduced orders

The post Sales fall for MillerKnoll in Q4, but increased orders boost outlook appeared first on Furniture Today.