MillerKnoll (MLKN) Is Down 10.2% After Cautious Q2 Revenue Outlook Despite Return to Profitability

• MillerKnoll, Inc. recently announced fiscal first quarter results showing sales growth to US$955.7 million and a return to profitability, but provided second quarter revenue guidance of US$926 million to US$966 million, indicating a potential decrease from the previous year at the midpoint.
• Despite strong earnings performance, management’s forecast for next quarter’s revenues came in below analyst expectations, highlighting concerns about a possible slowdown in demand.
• We will explore how MillerKnoll's cautious revenue outlook shapes the company’s future growth story and analyst valuation assumptions.

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MillerKnoll Investment Narrative Recap

To be a MillerKnoll shareholder, you need to believe in the company's ability to drive long-term growth through retail expansion, product innovation, and effective integration of its major brands. The most recent earnings announcement highlights management's cautious short-term revenue outlook, which may dampen momentum for the stock's recovery and raises near-term risk around weakening demand, but does not materially alter the core growth catalysts underlying the business. Among recent announcements, MillerKnoll’s plan to open 12 to 15 new US stores this year stands out as highly relevant. The move reflects leaders’ confidence in retail channel growth as a critical lever for future sales, even as near-term revenue guidance trails expectations. This continued investment in physical retail could buffer against some demand slowdowns, but its impact will depend on execution, store performance, and market conditions. In contrast, investors should be aware that lower-than-expected North American Contract orders and cautious guidance could signal challenges beyond...

Read the full narrative on MillerKnoll (it's free!)

MillerKnoll's outlook expects $4.0 billion in revenue and $293.0 million in earnings by 2028. This assumes annual revenue growth of 3.2% and an earnings increase of $329.9 million from current earnings of -$36.9 million.

Uncover how MillerKnoll's forecasts yield a $35.00 fair value, a 95% upside to its current price.

Exploring Other Perspectives

All Simply Wall St Community fair value estimates for MillerKnoll land at US$35, drawn from 1 unique perspective. This stands apart from recent concerns about demand risk, inviting you to compare these diverse viewpoints.

Explore another fair value estimate on MillerKnoll - why the stock might be worth just $35.00!

Build Your Own MillerKnoll Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your MillerKnoll research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free MillerKnoll research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MillerKnoll's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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