Herman Miller Shares Sank: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of furniture designer Herman Miller (Nasdaq: MLHR  ) are sinking today, down by 10%, after the company reported second-quarter earnings results that fell short of what the market was expecting.

So what: Revenue in the second quarter totaled $445.6 million, while earnings per share came in at $0.41. Sales fell short of the $452.7 million estimate and bottom-line profit was right on target with expectations.

Now what: Going forward, the company sees third-quarter sales in the range of $400 million to $420 million, which is far short of the $455.8 million that the Street is looking for. The company also expects gross margin in the coming quarter to tick down sequentially. CEO Brian Walker said, “Reduced order momentum this past quarter reflected pockets of weakness in some customer sectors driven by a reduction in large order volume compared to last year.”

Interested in more info on Herman Miller? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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