Herman Miller, Inc (NASDAQ: MLHR) stock rose over 4.4% on 19th September, 2019 (as of 11:44 am GMT-4; Source: Google finance) as the company posted better than expected results for the first quarter of FY 20. The Company had ended the first quarter 2020 with total cash and cash equivalents of $159.5 million. Cash flow generated from operations was $52.8 million in the first quarter 2020 compared to $32.9 million in the corresponding quarter last fiscal year. The sales and order growth for the first quarter 2020 were on the back of the company’s North America and Retail businesses. Consolidated sales growth, higher gross margins and operating expenses were combined to boost the operating margin expansion over the same quarter last year.
The company’s new orders in the first quarter 2020 was of $676.7 million, which is 6.9% more than the prior year level. On an organic basis, which excludes the impact of foreign currency translation, the net sales and orders in the first quarter 2020 have risen by 7.7% and 7.3%, respectively, compared to the same quarter last fiscal year. MLHR has posted the consolidated gross margin in the first quarter of fiscal 2020 of totaled 36.7%, which is a 70 basis point expansion from the level reported in the same quarter of last fiscal year. Operating expenses in the first quarter had risen to about $184 million compared to $178 million in the same quarter a year ago.
MLHR in the first quarter of FY 20 has reported the adjusted earnings per share of 84 cents, beating the analysts’ estimates for the adjusted earnings per share of 78 cents, according to Analysts polled by FactSet. The company had reported the adjusted revenue growth of 7.4 percent to $670.9 million in the first quarter of FY 20, beating the analysts’ estimates for revenue of $661 million.
For second quarter of fiscal 2020, Herman Miller expects the net sales to be in the range of $685 million to $705 million. On an organic basis, adjusted for foreign currency translation, this projection reflects the sales growth of 7% compared to the second quarter of last year at the mid-point of the range. The Company expects diluted earnings per share to be in the range of $0.85 to $0.89.
Meanwhile, MLHR has recently opened its new Outlet store in Yonkers, New York, less than 30 miles north of New York City. This is located along the Central Park Avenue shopping corridor, the new DWR Yonkers Outlet is a design enthusiast’s dream, and showcases over 40,000 square feet of merchandise priced to move quickly.