Here’s what Herman Miller’s Q4 earnings report tells us

Herman Miller Inc (NASDAQ: MLHR) reported its financial results for the fiscal fourth quarter on Monday that beat Wall Street estimates as easing COVID-19 restrictions fuelled demand for office furniture in North America.

“With many companies beginning to return to their offices, activity levels are increasing across North America. As the pandemic subsides, we have increasing clarity relative to business expectations moving forward.” Herman Miller said.

Financial performance

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Herman Miller said its net income printed at $7.4 million in the fourth quarter that translates to 12 cents per share. In the comparable quarter of last year, it had posted $173.7 million of loss or $2.95 per share.

On an adjusted basis, the furniture company earned 56 cents per share in Q4. Herman Miller generated $621.5 million of sales in the recent quarter – an increase from $475.7 million last year. According to FactSet, experts had forecast $583 million of sales and 39 cents of earnings per share.

Retail segment reports record sales

On a year-over-year basis, Herman Miller said orders remained unchanged in the fourth quarter. It, however, reported a 21% increase in orders sequentially. The American company’s retail segment reported record quarterly sales with a segment operating margin of 19.2%.

Full-year results

For the full financial year, Herman Miller reported $2.47 billion of net sales representing an annualised growth of 0.9%. Its full-year per-share earnings came in at $2.92 versus 15 cents of loss in the previous year. On an adjusted basis, it earned $3.33 per share compared to last year’s $2.61.

Guidance for the first quarter

For the fiscal first quarter, Herman Miller now forecasts up to $670 million of sales. Its estimate for adjusted per-share profits stands at 52 cents to 58 cents in Q1. The Nasdaq-listed firm valued its liquidity at $661.6 million as of the end of Q4.

Impact on the share price

The news comes a week after Herman Miller named Mike R. Smith (experienced financial executive) to the Board of Directors. Shares of the company were reported about 3% down in after-hours trading on Monday.