The following is a summary of the MillerKnoll, Inc. (MLKN) Q2 2025 Earnings Call Transcript:
Financial Performance:
MillerKnoll reported Q2 fiscal 2025 consolidated net sales of $970 million, a 2.2% year-over-year increase.
Gross margin for the quarter was reported at 38.8%.
Operating margin in the Americas segment improved to 10.2% from 9.4% in the previous year.Net debt to EBITDA ratio stood at 2.94 turns.
Business Progress:
Americas Contract segment showed a 6.2% organic net sales increase, marking the third consecutive quarter of order growth.
Introduced a refreshed Mirra 2 Chair with enhanced sustainability features.
Planned opening of new Design Within Reach Studios and a Herman Miller store, expanding retail presence.
Launched a new Fulfillment Center in Belgium to enhance supply chain efficiency in Europe.
Opportunities:
Continued expansion in the Middle East and parts of Asia signals opportunities for growth in these regions.
Strong order growth and customer engagement during promotional periods indicate positive market receptivity to new product launches and marketing strategies.
Risks:
The potential implementation of new tariffs could impact costs and supply chain strategies, requiring adjustments in sourcing and pricing.
Decreased order rates experienced in Q2 may affect near-term growth expectations, despite optimism for a pickup in later quarters.
More details: MillerKnoll IR
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