Last quarter, I was happy to discover that Herman Miller (NASDAQ:MLHR) not only builds cool and comfortable office furniture but also produces very impressive results for its shareholders. The company had a great quarter of sales and earnings growth, and the good times continued through its just-completed fiscal third quarter.
Herman Miller reported net earnings of $16.8 million, or $0.24 per share. That's a jump of 115% over last year's results. Sales climbed 16%, making this the third consecutive quarter of double-digit year-over-year sales growth.
The company's August price increases continue to offset the impact of higher material costs and haven't slowed down the demand for its chairs. Gross margins improved 23.8% in spite of the higher costs, and orders increased by 10.1%.
On top of the plethora of good news, the company is sitting on $46.2 million of free cash flow. And the company has shown it's willing to give back to its shareholders, as demonstrated by its $23 million in share repurchases last quarter.
The company seems likely to carry its momentum forward, with backlogs increasing by 9.7% in the latest quarter. Herman Miller expects sales in the range of $380 million to $400 million in its fiscal fourth quarter.
With great margins, growing earnings and sales, and positive cash flow, Herman Miller, the company, has become as popular as a Herman Miller chair. How long it can continue at its rapid pace is unclear, but it sure seems to have everything positioned correctly to ensure it maintains its seat at the top.
Fool contributor Mike Cianciolo welcomes feedback and doesn't own shares of Herman Miller.
