Third Quarter and Fiscal 2025 Outlook
The table below presents our expectations for third quarter and selected full year fiscal 2025 financial operating results:
| Q3 FY2025 | Full Year FY25 | |
| Net sales | $903 million to $943 million | |
| Gross margin % | 38.1% to 39.1% | |
| Adjusted operating expenses* | $293 million to $303 million | |
| Interest and other expense, net | $16.7 million to $17.7 million | |
| Adjusted effective tax rate* | 21.5% to 23.5% | |
| Adjusted earnings per share - diluted* | $0.41 to $0.47 | $2.11 to $2.17 |
| *Items indicated represent Non-GAAP measures. The Q3 FY2025 outlook excludes an expected $6 million in operating expense charges related to amortization of Knoll purchased intangibles and the related tax and earnings per share impact. | ||
We are encouraged with both internal and external indicators that collectively support an expectation of improving demand trends in most of our markets. While we expect our fiscal third quarter to be impacted by typical seasonal softness in our Americas and International Contracts businesses as the calendar year comes to a close and by the timing of the Chinese New Year holiday, our full year guide reflects the improving demand trends. We narrowed our full year adjusted earnings per share range and modestly lowered the midpoint given the slower than expected macroeconomic improvements and lower than expected orders in the first half of the year. Our updated guidance continues to reflect full year sales and EPS growth over fiscal 2024.
Due to the timing dynamic of this year's holiday/cyber promotional period, we estimate approximately $12 million in Global Retail net sales shifted from our fiscal second quarter into our fiscal third quarter, as compared to the prior year. This is reflected in our third quarter guidance.
