MillerKnoll Inc (NASDAQ:MLKN) stock rallies 9.85% (As on June 26, 11:22:01 AM UTC-4, Source: Google Finance) after the company reported fourth quarter fiscal 2025 results that exceeded analyst expectations for both earnings and revenue. Orders in the quarter of $933.0 million were up 1.1% as reported and 2.9% on an organic basis. Orders grew sequentially 12.4% from the previous quarter on a reported basis. Gross margin in the quarter was 39.6%, which is 250 basis points higher than the same quarter last year. The year-over-year increase in gross margin was driven mainly by the realization of price and channel optimization strategies, cost synergies and continued reductions in freight and distribution costs. During the fourth quarter, the Company recorded special charges of $22.1 million associated with previously announced restructuring measures, which included a workforce reduction and showroom consolidation. On an adjusted basis, consolidated operating margin for the quarter was 8.3% compared to 5.9% in the same quarter last year, reflecting an adjusted operating margin expansion of 240 basis points.
Moreover, for the fourth quarter, Americas Contract net sales of $416.6 million were down 12.2% on a reported basis and down 12.3% organically compared to the same period last year. The International Contract and Specialty segment net sales in the fourth quarter of $245.0 million grew 3.2% on a reported basis and 3.8% on an organic basis year-over-year. Net sales in the fourth quarter of our Global Retail segment totaled $227.3 million, a decline of 7.2% year-over-year.
MLKN in the fourth quarter of FY25 has reported the adjusted earnings per share of 60 cents, beating the analysts’ estimates for the adjusted earnings per share of 44 cents. The company had reported the adjusted revenue decline of 7.1 percent to $961.8 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $913.8 million. It declined 5.2% organically compared to the same period last year.
Additionally, as of June 1, 2024, the liquidity position reflected cash on hand and availability on our revolving credit facility totaling $552.7 million. During the fourth quarter, the business generated $78.4 million of cash flow from operations. The company repurchased approximately 1.4 million shares for a total cash outlay of $37.3 million. The company ended the fourth quarter with a net debt-to-EBITDA ratio of 2.63x.
MillerKnoll also provided guidance for the first quarter of fiscal 2026. The company expects EPS between $0.32 and $0.38, compared to the consensus of $0.35. Revenue is forecast to be in the range of $899 million to $939 million, with the midpoint of $919 million exceeding the analyst estimate of $890.7 million.