MillerKnoll Inc. (NASDAQ: MLKN) has reported its fourth-quarter and full fiscal year 2024 results, which ended on June 1, 2024. The company experienced a 7.1% decrease in net sales for the fourth quarter, with net sales amounting to $888.9 million compared to $956.7 million in the same period the previous year. However, the company reported a 1.1% increase in orders for the fourth quarter, reaching $933.0 million, and a 2.9% organic growth from the previous year.
Gross margin for the fourth quarter improved significantly, increasing to 39.6% from 37.1% in the same period the previous year. The company also achieved a 250 basis points improvement in gross margin year-over-year. Additionally, both GAAP and adjusted diluted earnings per share for the full fiscal year 2024 improved, with GAAP earnings per share showing a remarkable 101.8% increase and adjusted earnings per share increasing by 12.4% from the prior year.
The company's operating expenses for the fourth quarter were $328.7 million, marking a 4.2% decrease from the previous year. Moreover, the effective tax rate decreased to 14.8% from 119.9% in the same period last year, while the adjusted effective tax rate showed a decrease from 21.7% to 12.0%.
In terms of segment performance, the Americas contract segment reported a 12.2% decrease in net sales for the fourth quarter, while the International contract and specialty segment experienced a 3.2% growth in net sales. The Global retail segment saw a decline of 7.2% in net sales for the same period.
Looking ahead to fiscal year 2025, MillerKnoll is optimistic about increased activity and interest in the contract space. The company expects net sales to surpass those of fiscal year 2024, with adjusted diluted earnings per share estimated to be in the range of $2.10 to $2.30.
Following these announcements, the company's shares moved 2.0%, and are now trading at a price of $26.15. If you want to know more, read the company's complete 8-K report here.
