Zeeland, Mich.-based furniture maker MillerKnoll announced a loss in the fiscal fourth quarter due to a decrease in sales and higher costs resulting from their ongoing restructuring plan.
For the three months ending June 3, MillerKnoll reported a loss of $100,000, or 0 cents per share, compared to a profit of $21.5 million, or 28 cents per share, during the same period last year.
After adjusting for one-time items, earnings per share were 41 cents, surpassing analysts’ expectations of 39 cents. In March, the company had projected adjusted earnings per share in the range of 37 to 43 cents.
Sales declined by 13% to $956.7 million, driven by a 9% decrease in orders. FactSet analysts had predicted even lower sales of $945.6 million for the quarter, while MillerKnoll had anticipated sales ranging from $930 million to $970 million.
While MillerKnoll’s gross margin expanded to 37.1%, representing a 230 basis point increase, the company experienced a 5.4% rise in operating expenses and incurred restructuring charges of $14.2 million.
MillerKnoll acknowledges that the current macroeconomic conditions will continue to present challenges to the furniture industry.
