MillerKnoll reported its first quarter results on September 22, with consolidated orders climbing 3.2% to $913.9 million even as net sales fell 3.4% year over year to $923.4 million. International contract orders jumped 17.3% to $181.2 million on a large project win in South Korea, and North America retail orders rose 7.5% for an eighth straight quarter of growth, while North America contract revenue, the company's largest segment, fell 5.3% to $505.6 million and consolidated backlog slipped 3.1% to $669.2 million. Adjusted gross margin rose 330 basis points to 41.8%, operating cash flow jumped to $49.1 million from $9.4 million a year earlier, and net debt to EBITDA eased to 2.75 times from 2.8 times, with liquidity at $580.4 million. New U.S.-Canada trade friction is expected to cost $0.07 per share for the rest of the fiscal year, helping push full-year revenue guidance down to a range of $3.88 billion to $4.03 billion, and the quarter carried $13.4 million in special charges including $6.0 million tied to restructuring as the company closes its third manufacturing facility in West Michigan. The stock trades at a forward P/E of 10.09 as of September 24, with short interest at 8.12% of float and hedge fund ownership up from 19 funds to 21.
MillerKnoll IncQ1 orders rose 3.2% and gross margin expanded 330bp, but net sales fell 3.4%, revenue guidance was cut on new U.S.-Canada trade friction, and restructuring charges hit results.
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