MillerKnoll Plunges 22% on $955m–$995m Forecast and Higher Shipping Costs
MillerKnoll shares tumbled 22% after the furniture maker warned of higher shipping costs and minimal shipments to the Middle East due to ongoing conflict. The company forecast first-quarter sales of $955 million to $995 million and adjusted earnings per share of $0.49 to $0.55, both below analyst estimates.
1. Q1 Guidance Details
MillerKnoll issued first-quarter sales guidance of $955 million to $995 million and adjusted earnings per share of $0.49 to $0.55, both figures falling short of analyst consensus. The lowered outlook factors in higher global shipping expenses, which the company cited as a significant cost pressure.
2. Impact of Middle East Conflict
Management highlighted minimal shipments to the Middle East due to regional hostilities, compounding logistics challenges and elevating freight rates. The suspension of deliveries to key markets has constrained revenue growth in the current quarter.
3. Market Reaction and Legal Review
Following the guidance release, shares dropped 22%, marking the steepest decline since the company’s public debut. Some investors have initiated inquiries into potential disclosure issues, exploring whether executive communications fully reflected the risks posed by geopolitical tensions and cost headwinds.