- MillerKnoll Inc (NASDAQ:MLKN) reported third-quarter net sales growth of 74.3% year-over-year to $1.03 billion, +20.3% on an organic basis, in line with the consensus of $1.03 billion.
- The company stated that sales growth continued to be constrained due to global supply chain and labor supply disruptions and impacted net sales by ~$34 million during the quarter.
- Adjusted EPS was $0.28, beating consensus estimates of $0.27.
- The gross margin declined to 32.7% from 39.1% during the same quarter last year. The adjusted gross margin stood at 32.7%.
- The operating margin was 2.6% compared to 9.3% during the prior year and on an adjusted basis was 4% compared to 9.4%.
- Quarterly orders totaled $1.1 billion (+93.6% Y/Y) and +31.5% Y/Y organically. Backlog increased by 168.3% Y/Y to $1.02 billion.
- MLKN cash used in operating activities year-to-date was $57.9 million, compared to cash generated of $260.1 million a year ago.
- At the end of the quarter, MillerKnoll's liquidity position reflected cash on hand and availability on our revolving credit facility totaling $543 million.
- 4Q22 Outlook: MillerKnoll expects sales to range between $1.075 billion and $1.115 billion, versus a consensus of $1.03 billion.
- The company anticipates earnings per share to be between $0.46 and $0.52 versus a consensus of $0.49.
- Price Action: MLKN shares are trading higher by 5.40% at $34.77 during the post-market session on Tuesday.
