MLHR - Herman Miller Survives a Stress Test
Shares of iconic furniture designer and manufacturer Herman Miller (NASDAQ: MLHR) raced forward on Thursday of this past week, soaring more than 33% following the release of a resilient first-quarter fiscal 2021 quarterly report. Investors had anticipated an extremely weak top-line performance, as the company's biggest revenue stream, its North American segment, depends on project-based corporate orders. Needless to say, completing office furnishings projects hasn't figured as a high priority for many businesses in a year characterized by remote working.
While the North American segment did indeed stall, with organic sales slumping nearly 27% from the prior-year quarter, Herman Miller offset much of this pressure through its international and retail segments. Thus a total revenue dip of less than 7%, to $627 million, coupled with news that the company was reinstating its dividend, pulled investors aggressively back into the furniture maker's fold.
The company is marketing chairs like the Mirra 2 as ergonomic work-from-home options. Image source: Herman Miller.