Herman Miller (MLHR) Tops Q1 EPS by 98c, Revenues Beat

Herman Miller (NASDAQ: MLHR) reported Q1 EPS of $1.24, $0.98 better than the analyst estimate of $0.26. Revenue for the quarter came in at $626.8 million versus the consensus estimate of $524.83 million.

• Strong Retail performance and improving global trends help offset near-term demand pressures in North America
• Robust gross margin of 39.9% reflects an increase of 320 basis points from last year
• Quarterly cash dividend program re-established at $0.1875 per share

Outlook

While encouraged by our strategic progress, we are continuing to suspend sales and earnings guidance given the uncertain demand environment in the face of the persisting global pandemic. Despite not offering guidance, there are certain demand indicators that we believe are relevant for investors developing revenue estimates for our business in the upcoming quarter. Recent demand patterns and backlog are the most relevant data points to estimate near-term revenue opportunity. As noted earlier, orders in the first quarter at the consolidated level were down 18% from the same period last year and, through the first two weeks of the second quarter, consolidated orders were down 10%. Backlog at the end of the quarter was flat with last year. On the profitability front, we continue to expect operating income deleverage in the range of 25% to 30% over time. While this will not necessarily be an even walk from quarter to quarter, we would expect this outcome over time if we experience a recessionary period of similar depth and duration to the past two recessions.

For earnings history and earnings-related data on Herman Miller (MLHR) click here.

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