NASDAQ$MLKN

Millerknoll Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Herman Miller's Q3 2021 performance was marked by retail and international sales growth, which partially offset the impact of near-term demand pressures in North America Contract. The retail segment experienced accelerated momentum, achieving substantial sales and order growth, alongside consolidated operating margin expansion compared to the previous year.

Herman Miller reported a decrease in consolidated net sales by 11% to $590.5 million, but experienced strong growth in its Retail segment with a 63% increase in sales. The company's operating margin expanded, and earnings per share increased by 9.4% on a reported basis.

  • Retail segment experienced accelerated momentum with sales growth of 63% and order growth of 81%.
  • North America Contract segment was impacted by the pandemic, with sales and orders down 35% and 38% respectively.
  • International business delivered net sales growth of 6% on a reported basis.
  • Consolidated operating margin increased by 40 basis points year-over-year, driven by gross margin expansion and cost management.

Headline financials

Total Revenue

$591M

Previous: $666M-11.3%
EPS (adj)

$0.65

Previous: $0.74-12.2%
Gross Margin

39.1%

No prior period
Adjusted Operating Margin

9.4%

No prior period
Backlog

$379M

Previous: $411M-7.8%
Capital Expenditures

-$42.8M

Previous: -$56.5M+24.2%
Free Cash Flow

-$1.3M

Previous: -$18.8M+93.1%
Net Income

$41.5M

Previous: $37.7M+10.1%
Operating Income

$55.1M

Previous: $50.4M+9.3%
Gross Profit

$231M

Previous: $243M-5.1%
Cash & Equivalents

$397M

Previous: $111M+259.3%
Total Assets

$2.05B

Previous: $1.99B+3.5%
Stock-Based Comp

$2.2M

Previous: $2.5M-12.0%

Revenue & EPS history

MillerKnoll · Revenue · Quarterly

$591M

Q3 2021-11.3%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

MillerKnoll · $434M total across 2 segments · Q3 2021

  • North America Contract
    $268M
  • International Contract
    $166M

Forward guidance

The company anticipates increased demand in the contract sales funnel during the second half of calendar 2021, while also expecting commodity pressures, especially associated with steel prices. They are reinstating employer retirement contributions, which were temporarily suspended for the first three quarters of fiscal 2021. Ongoing cost reduction initiatives and planned price increases are expected to offset these pressures over time.

Tailwinds

  • Increased demand expected as the global contract market begins to recover.
  • Sustained momentum in the Retail business.
  • Global, multi-channel distribution model puts the company in a strong position to drive growth.
  • Contract sales funnel pointing to increased demand in the back half of calendar 2021.
  • Ongoing cost reduction initiatives and a planned price increase will help offset the pressures over time.

Headwinds

  • Overall global demand environment remains uncertain.
  • Potential pace of recovery remains uncertain.
  • Experiencing commodity pressures, especially associated with steel prices.
  • Reinstating employer retirement contributions, which were temporarily suspended for the first three quarters of fiscal 2021.
  • Impact of COVID-19 remains a risk.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.6%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+2.4%

Avg return

30 days after

45%

26 / 58 earnings

Positive

+38.9%

Q1 2021

Best reaction

-23.0%

Q3 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-23.0%-8.8%
Q2 2026+7.7%+3.0%+10.1%
Q1 2026-11.0%-6.3%-8.3%
Q4 2025-0.3%-2.1%+7.7%
Q3 2025+10.7%+4.7%-10.4%
Q2 2025-9.1%-12.7%-13.6%
Q1 2025-15.1%-10.9%-8.8%
Q4 2024+3.0%+3.2%+16.4%
Q3 2024-17.4%-12.8%-14.2%
Q2 2024-2.9%-3.3%-12.1%
Q1 2024+24.1%+23.8%+16.4%
Q4 2023+9.8%+6.1%+26.2%
Q3 2023-5.2%-2.0%-16.7%
Q2 2023+14.8%+16.4%+24.1%
Q1 2023-11.3%-11.2%+8.9%
Q4 2022-7.5%-7.0%+6.0%
Q3 2022+10.7%+9.8%+5.2%
Q2 2022-5.3%-10.3%-6.2%
Q1 2022-4.4%-1.1%-1.2%
Q4 2021-7.6%-3.5%-11.3%
Q3 2021-0.2%-0.6%+6.5%
Q2 2021-12.7%-16.1%-11.6%
Q1 2021+38.9%+27.7%+33.8%
Q4 2020-4.8%-10.0%-4.3%
Q3 2020+5.2%+16.6%+21.7%
Q2 2020-9.5%-10.1%-13.3%
Q1 2020+1.3%+3.2%+2.7%
Q4 2019+18.8%+18.5%+23.1%
Q3 2019-0.4%-3.5%+5.3%
Q2 2019-0.9%-5.1%+12.1%
Q1 2019+7.4%+3.9%-9.7%
Q4 2018+12.4%+13.0%+11.9%
Q3 2018-14.1%-17.5%-14.9%
Q2 2018+7.2%+5.7%+13.0%
Q1 2018-3.3%-2.1%+2.3%
Q4 2017+9.3%+10.0%+10.6%
Q3 2017+8.0%+6.3%+9.4%
Q2 2017-4.2%-5.4%-13.5%
Q1 2017-4.8%-9.2%-12.5%
Q4 2016+3.2%-10.7%+3.3%
Q3 2016+8.3%
Q2 2016+1.9%
Q1 2016+3.6%
Q4 2015+1.8%
Q3 2015+0.7%
Q2 2015-0.5%
Q1 2015+2.5%
Q4 2014-5.0%
Q3 2014+9.4%
Q2 2014-1.4%
Q1 2014+3.8%
Q4 2013-2.0%
Q4 2012+9.1%
Q4 2009-6.1%
Q3 2011-1.4%
Q2 2011-3.4%
Q4 2010-0.7%
Q1 2011-0.7%

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