MillerKnoll Inc (NASDAQ:MLKN) stock plunges 13.65% (As on September 20, 11:22:35 AM UTC-4, Source: Google Finance) after the company reported quarterly results that missed the average estimates among Wall Street analysts. Orders in the quarter of $935.9 million were up 2.4% as reported and 3.5% on an organic basis. Gross margin in the quarter was 39.0%, which is flat with the same quarter last year despite the lower revenue level. Consolidated adjusted operating expenses were $286.9 million, a decrease of $15.8 million year-over-year, driven by variability on lower net sales and the impact of cost synergies achieved through the acquisition of Knoll. On an adjusted basis, consolidated operating margin for the quarter was 5.8% compared to 6.0% in the same quarter last year.
MLKN in the first quarter of FY 25 has reported the adjusted earnings per share of 36 cents, missing the analysts’ estimates for the adjusted earnings per share of 40 cents. The company had reported the adjusted revenue decline of 6.1 percent to $861.5 million in the first quarter of FY 25, missing the analysts’ estimates for revenue of $889.4 million. As of August 31, 2024, our liquidity position reflected cash on hand and availability on our revolving credit facility totaling $488.4 million. During the first quarter, the business generated $21.1 million of cash flow from operations.
Moreover, for the first quarter, Americas Contract net sales of $454.6 million were down 7.3% on a reported basis and down 7.0% organically compared to the same period last year. International Contract and Specialty segment net sales in the first quarter of $213.5 million were down 6.5% on a reported basis and down 6.3% on an organic basis year-over-year. For the first quarter, the Global Retail segment sales totaled $193.4 million. This represents a year-over-year decline of 2.8% on a reported basis, and was essentially flat on an organic basis.
MillerKnoll kept its full-year guidance unchanged for adjusted earnings of $2.20 a share, the mid-point of a range provided in June. Analysts on average expect $2.18 a share.
As for the second quarter ending in November, management forecast net sales in a range of $950 million to $990 million, compared with the consensus of $948.1 million. The company expects adjusted diluted earnings in the second quarter of $0.51 to $0.57 a share, compared with the consensus of $0.61 a share.