MLKN - Why MillerKnoll Stock Skyrocketed on Wednesday
2023-09-27 13:12:53 ET
Shares of MillerKnoll (NASDAQ: MLKN) were up 29% as of 12:14 p.m. ET on Wednesday after the company reported another sales decline for the fiscal first quarter of 2024 but management issued a better-than-expected forecast for full-year earnings.
Net sales fell 14.9% year over year (YOY) while adjusted earnings per share were down 15.9%. However, management noted signs of stabilizing sales trends and fading risk of a recession, which bolstered investor confidence for a stock that is down 61% off its previous highs.
The home furnishings industry has faced obstacles over the last year from high inflation and other macroeconomic headwinds. While management sees the risk of a recession fading in North America, a weak housing market continues to pressure sales. China and Europe are still wrestling with challenging economic conditions, which sent the company's global retail segment sales down 26% YOY.
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Why MillerKnoll Stock Skyrocketed on Wednesday