Herman Miller, Inc.(NASDAQ:MLHR) stock fell 3.99% (As on Sep 30, 11:56:53 AM UTC-4, Source: Google Finance) after the company posted inline earnings with the analysts’ estimates. Orders in the quarter of $916.5 million were up 64.8% compared to the prior year period and up 34.5% organically. The sales levels in the prior year period were elevated due to COVID-related manufacturing and retail studio shutdowns resulting in higher backlog at the start of the quarter. On an organic basis, demand trends reflected sequential improvement in orders of $59 million, up 8.5% as compared to the fourth quarter of 2021. While order demand was strong, the ability to produce and ship orders in the near-term was affected by global supply chain and labor supply disruptions. The company estimates this adversely impacted net sales by approximately $30 million during the first quarter.

On the other hand, the company had completed acquisition of Knoll, Inc. during the quarter, creating the preeminent leader in modern design. Subject to shareholder approval at this year’s annual meeting, the Board elected to change the name to MillerKnoll, Inc. Further, Global Retail had another strong quarter with orders up 22% over the prior year period. The Americas Contract segment saw orders increase by 43% over last year, and International orders were up 35%. Knoll’s Workplace business also saw a positive order momentum, and leading indicators in this business are consistent with what the company saw in the Americas business, with the funnel of new projects up 18% and 14% respectively from last year. Knoll’s residential business also saw strong order growth in both North America and in Europe.

MLHR in the first quarter of FY 22 has reported the adjusted earnings per share of 49 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 49 cents. The company had reported the adjusted revenue growth of 26 percent to $789.7 million in the first quarter of FY 22. Adjusted gross margin in the quarter was 35.9% compared to 40% in the prior year period and was impacted by higher commodity costs and other inflationary pressures.

The company expects sales in the second quarter to range between $1.025 billion and $1.065 billion and adjusted earnings per share to be between $0.55 and $0.61.