Financial Data and Key Metrics Changes - Adjusted earnings per share for the second quarter were $0.43, exceeding expectations, reflecting stronger-than-expected sales and gross margin performance [13] - Consolidated net sales for the quarter were $955 million, down 1.6% year over year on a reported basis and 2.5% lower organically [13] - Consolidated gross margin was 39%, including approximately $1 million in net tariff-related costs [14] - Operating cash flow generated was $65 million, with liquidity at $548 million [14] Business Line Data and Key Metrics Changes - North America contract segment net sales were $509 million, down 3.1% year over year, with orders increasing to $507 million, up 4.8% from the prior year [16] - International contract segment net sales were $171 million, down 6.3% on a reported basis, with orders rising to $162 million, up 6.6% [17] - Global retail segment net sales were $276 million, up 4.7% on a reported basis, with orders improving to $304 million, up 6% year over year [18] Market Data and Key Metrics Changes - Orders in North America retail increased 8%, with comparable sales growth also up 8% [6] - During the holiday cyber promotional period, orders rose 12% compared to the same period last year [7] - Total healthcare orders were up 5% year to date, indicating strong demand in resilient sectors [10] Company Strategy and Development Direction - The company is focused on expanding its retail footprint, delivering innovative products, and deepening customer engagement globally [5] - Plans to open 14-16 new stores in the US for the full fiscal year, aiming to double the DWR and Herman Miller store footprint over the next several years [8] - The strategy includes leveraging supply chain strength, with approximately 70% of North America retail's cost of goods sourced from the U.S. [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism based on solid order growth across all segments and encouraging signals in the market [11] - The return-to-office trend is positively impacting demand for commercial real estate and contract furniture [10] - Management highlighted the importance of innovation and partnerships in driving future growth [11] Other Important Information - The company announced the consolidation of its Muskegon, Michigan facility, expected to deliver $10 million in annual run rate savings by fiscal 2028 [15] - The company is focused on maintaining a strong balance sheet while balancing investments and growth [15] Q&A Session Summary Question: Insights on second quarter performance and expectations - Management noted that gross margin exceeded expectations due to channel and product mix, along with effective pricing realization [22][23] Question: Order trends and pipeline insights - Orders were consistent across all businesses, with mid-single-digit growth observed in the first weeks of the new quarter [24][25] Question: Geographic and industry strength - Strong demand was noted in the Bay Area, Southern California, and the Northeast Coast, with energy and professional services industries being particularly active [27] Question: Impact of AI on demand - Management indicated that while the impact of AI on workspaces is still minimal, future productivity gains are anticipated [29] Question: Expectations for the contract business in Q3 - Orders in North America contract were up about 5% on an organic basis, with expectations of continued mid-single-digit growth [34] Question: Retail growth drivers - Brand awareness and store openings were highlighted as key factors driving retail growth, with marketing spend remaining consistent year over year [39][40] Question: Roadmap for doubling store count - Plans to open 14-16 stores annually were confirmed, with expectations of improved operating income from new store investments in the upcoming fiscal year [49][50]

Financial Data and Key Metrics Changes - Adjusted earnings per share for the second quarter were $0.43, exceeding expectations, reflecting stronger-than-expected sales and gross margin performance [13] - Consolidated net sales for the quarter were $955 million, down 1.6% year-over-year on a reported basis and 2.5% lower organically [13] - Consolidated net sales for the first half of the fiscal year reached $1.9 billion, up 4% year-over-year [13] - Second quarter consolidated gross margin was 39%, including approximately $1 million in net tariff-related costs [14] - Operating cash flow generated was $65 million, with liquidity at $548 million and a net debt-to-EBITDA ratio of 2.87x [15] Business Line Data and Key Metrics Changes - North America contract segment net sales were $509 million, down 3.1% year-over-year, while orders increased to $507 million, up 4.8% from the prior year [16] - International contract segment net sales were $171 million, down 6.3% on a reported basis, with orders rising to $162 million, up 6.6% [17] - Global retail segment net sales were $276 million, up 4.7% on a reported basis, with orders improving to $304 million, up 6% year-over-year [17][18] Market Data and Key Metrics Changes - Orders in North America retail increased 8%, with comparable sales growth also up 8% [6] - During the holiday cyber promotional period, orders rose 12% compared to the same period last year [7] - Total healthcare orders were up 5% year-to-date, indicating strong demand in resilient sectors [10] Company Strategy and Development Direction - The company is focused on expanding its retail footprint, delivering innovative products, and deepening customer engagement globally [5] - Plans to open 14-16 new stores in the U.S. for the full fiscal year, aiming to double the DWR and Herman Miller store footprint over the next several years [8] - The strategy includes leveraging a strong supply chain, with approximately 70% of North America retail's cost of goods sourced from the U.S. [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism based on execution and accomplishments in the first half of the fiscal year, with encouraging signals for continued growth [11] - The return-to-office trend is positively impacting demand for commercial real estate and contract furniture [10] - Management noted that the impact of AI on workspace design is still minimal but is being considered for future planning [30] Other Important Information - The company announced the consolidation of its Muskegon, Michigan facility, expected to deliver $10 million in annual run rate savings by fiscal 2028 [15] - Management emphasized the importance of operational excellence and scaling innovation as part of their strategic priorities [66] Q&A Session Summary Question: Insights on second quarter performance and expectations - The gross margin exceeded expectations due to channel and product mix, along with effective tariff mitigation strategies [23] Question: Order trends during the quarter - Orders were consistent across all businesses, with organic growth of 4.5% [25] Question: Geographic and industry strength - Strong performance noted in the Bay Area, Southern California, and the Northeast Coast, with healthcare as a growth driver [27] Question: Expectations for the contract business in Q3 - Orders in North America contract were up about 5% on an organic basis, with a positive outlook for the second half of the year [35] Question: Retail growth dynamics - Brand awareness and assortment expansion contributed to strong retail performance, with average order value increasing year-on-year [47] Question: Capital allocation and leverage targets - The company aims to reduce its leverage ratio to the 2 to 2.5 range while maintaining dividends and share repurchases [62]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q2 2026 were $0.43, exceeding expectations, reflecting stronger-than-expected sales and gross margin performance [10] - Consolidated net sales for the quarter were $955 million, down 1.6% year over year, with a 2.5% organic decline [10] - Consolidated net sales for the first half of the fiscal year reached $1.9 billion, up 4% year over year [10] - Orders for the quarter grew to $973 million, up 5.5% as reported and 4.5% higher on an organic basis [10] - Second quarter consolidated gross margin was 39%, including approximately $1 million in net tariff-related costs [11] Business Line Data and Key Metrics Changes - North America contract segment net sales were $509 million, down 3.1% year over year, while orders increased to $507 million, up 4.8% [12] - International contract segment net sales were $171 million, down 6.3% on a reported basis, with orders rising to $162 million, up 6.6% [13] - Global retail segment net sales were $276 million, up 4.7% on a reported basis, with orders improving to $304 million, up 6% year over year [13] Market Data and Key Metrics Changes - North America retail orders increased 8%, with comparable sales growth also up 8% [4] - During the holiday cyber promotional period, orders rose 12% compared to the same period last year [5] - Total healthcare orders were up 5% year to date, indicating strong demand in resilient sectors [7] Company Strategy and Development Direction - The company aims to double its DWR and Herman Miller store footprint over the next several years, anticipating the opening of 14-16 new stores in the US for the full fiscal year [5] - The strategy focuses on expanding retail footprint, delivering innovative products, and deepening customer engagement globally [4] - The company is optimistic about growth through enhanced innovation initiatives and expanding dealer networks [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in an improving demand environment and the ability to execute growth strategies [10] - The return-to-office trend is positively impacting demand for commercial real estate and contract furniture [6] - Management remains optimistic based on execution and accomplishments in the first half of the fiscal year, with encouraging signals for continued growth [8] Other Important Information - The company generated $65 million in operating cash flow and ended the quarter with $548 million in liquidity [11] - The net debt-to-EBITDA ratio was 2.87 times, reflecting a disciplined approach to capital allocation [11] - The company announced the consolidation of its Muskegon facility, expected to deliver $10 million in annual run rate savings by fiscal 2028 [11] Q&A Session Summary Question: Can you discuss the drivers behind the better-than-expected gross margin and operating expenses? - Management indicated that the better gross margin was due to channel and product mix, along with effective pricing realization and tariff mitigation efforts [18] Question: How did order rates fluctuate during the quarter, particularly in the Americas contract segment? - Orders were consistent across all three months of the quarter, with mid-single-digit growth observed [20] Question: What specific geographies or industries are showing strength in the contract business? - Strength was noted in the Bay Area, Southern California, and the Northeast Coast, with active demand in energy, professional services, and legal sectors [22] Question: What are the expectations for the contract business in the third quarter? - Orders in North America contract were up about 5% on an organic basis, with expectations for continued mid-single-digit growth [30] Question: How is the retail growth being driven, and what are the dynamics within customer segments? - The growth is attributed to increased brand awareness, new store openings, and a 22% year-on-year increase in product assortment [42][43] Question: What is the roadmap for doubling the store count, and what is the expected margin profile? - The company plans to open 14-16 stores annually, with expectations for improved operating income as new stores begin to contribute revenue [45][47] Question: What macro trends are contributing to the improved order momentum? - The return to office trend is driving demand, with organizations becoming more serious about workspace decisions [54]

Core Insights - The company has shown strong customer engagement and positive responses to its strategic initiatives, particularly in North America, where the return to office trend is boosting demand for commercial real estate and contract furniture [1][4][42] - The company is expanding its retail footprint, with plans to open 14 to 16 new stores in the fiscal year, driven by new store openings, product assortment expansion, e-commerce acceleration, and increased brand awareness [2][14][39] - Orders in North America retail increased by 8%, with comparable sales growth also up 8%, indicating strong performance during peak shopping periods [3][10] Financial Performance - In Q2, adjusted earnings per share were $0.43, exceeding expectations, while consolidated net sales were $955 million, down 1.6% year over year [9][10] - For the first half of the fiscal year, consolidated net sales reached $1.9 billion, up 4% year over year, with orders growing to $973 million, up 5.5% [10][11] - The second quarter gross margin was reported at 39%, with proactive measures expected to offset tariff-related costs in the second half of the fiscal year [10][16] Segment Performance - North America Contract segment net sales were $509 million, down 3.1% year over year, while international contract segment net sales were $171 million, down 6.3% [12][13] - The Global Retail segment saw net sales of $276 million, up 4.7% on a reported basis, with orders improving to $304 million, up 6% year over year [13][14] - The healthcare sector remains a growth driver, with total healthcare orders up 5% year to date [5][42] Strategic Initiatives - The company is focused on expanding its dealer network and enhancing its global showroom footprint, with new showrooms introduced in key international markets [5][6] - The strategy includes leveraging operational efficiency and optimizing production capabilities, with a consolidation plan expected to deliver $10 million in annual savings by fiscal 2028 [11][12] - The company is optimistic about future growth, driven by innovation initiatives and strong partnerships [6][44] Market Trends - The return to office trend is positively impacting demand, with organizations prioritizing workspace refreshes [1][42] - There is a noted increase in orders and dealer sentiment, indicating a favorable market environment for the company [1][4] - The competitive landscape remains promotional, but the company has maintained marketing spend levels while achieving strong sales growth [33][36]

ZEELAND, Mich., Dec. 17, 2025 /PRNewswire/ -- MillerKnoll Inc. (NASDAQ: MLKN), a growth-oriented small-cap value company in the industrial and consumer sectors, today reported results for the second quarter fiscal 2026 ended November 29, 2025. Visit the Company's investor relations website to view the earnings release. MillerKnoll is a global collective of design brands built on the foundation of two icons of modernism: Herman Miller and Knoll. The portfolio also includes furniture and accessories for comme ...

Financial Data and Key Metrics Changes - The company has improved its gross margin this quarter, surpassing levels recorded in the first two quarters of the year, attributed to a more favorable sales mix [4][5] - Sales of Natuzzi Italia grew by 18% compared to the third quarter of last year, while sales of unbranded products decreased by 20% [5] Business Line Data and Key Metrics Changes - The company is focusing on supporting branded sales that offer higher margins, while unbranded products, which are not core to the business, have seen a decline [5] - SG&A costs remain high relative to the current revenue base, despite decreases in wages and transportation expenses this quarter [5][6] Market Data and Key Metrics Changes - Foot traffic in stores, particularly in the United States and Europe, continues to lag, although there are improvements in conversion rates [4] - Consumer confidence remains weak, impacting overall sales despite marketing investments [4][19] Company Strategy and Development Direction - The company plans to rationalize its factory operations in Italy, reducing production from six factories to three, which requires government and union agreements [12] - The company is committed to reducing costs while improving margins and sales, with a focus on enhancing consumer confidence [19][20] - The company is investing in international trade events and enhancing in-store experiences to attract customers [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging business environment and the impact of geopolitical situations on consumer confidence [4][19] - There is a commitment to work on cost reduction and improving margins, with expectations for better sales in 2026 compared to 2025 [19][20] Other Important Information - The company is actively pursuing government aid to improve quality and reduce transformation costs at its Italian factory [6] - The company is treating its contract trade division as a startup, with a conservative forecast for 2026 revenue between EUR 5 million and EUR 10 million [26][27] Q&A Session Summary Question: What are the expectations from the upcoming meeting with the government? - Management is working on a restructuring plan that includes rationalizing factory operations and potentially reducing the workforce with government assistance [11][12] Question: Will the company be profitable at current revenue levels? - The target is to achieve profitability around EUR 28 million to EUR 29 million per month, with various measures being discussed to avoid cash burn [16][17] Question: Update on the commercial division's progress? - The company is making significant investments in the trade contract business, with ongoing projects in Dubai and Jerusalem, but forecasts for 2026 are conservative [22][24][26] Question: Status of the CEO selection process? - The decision on the new CEO is ongoing, with interviews being conducted over weekends, and management hopes to provide updates soon [28]

Financial Data and Key Metrics Changes - The company improved its gross margin this quarter, surpassing levels recorded in the first two quarters of the year, attributed to a more favorable sales mix [4][5] - Sales of Natuzzi Italia grew by 18% compared to the third quarter of the previous year, while sales of unbranded products decreased by 20% [5] Business Line Data and Key Metrics Changes - The company is focusing on supporting branded sales that offer higher margins, as indicated by the growth in Natuzzi Italia sales [5] - The closure of the Shanghai factory last year resulted in cost savings on industrial operations in China, although labor costs in Italy remain a challenge [5][6] Market Data and Key Metrics Changes - Consumer confidence remains weak, impacting foot traffic in stores, particularly in the United States and Europe, despite marketing investments [4][15] - The company is actively participating in international trade events to enhance brand visibility and customer engagement [6][20] Company Strategy and Development Direction - The company plans to rationalize its factory operations in Italy, reducing the number of factories from six to three, which requires government and union agreements [9][11] - The management is committed to reducing fixed costs while supporting sales, and is in discussions with the Italian government for aid to improve production efficiency [6][9] Management Comments on Operating Environment and Future Outlook - The management acknowledges the challenging business environment and the impact of geopolitical situations on consumer confidence [4][15] - There is a focus on achieving profitability and positive cash flow through cost reduction and improved margins, with a target of EUR 28-29 million in monthly turnover [13][15] Other Important Information - The company is treating its contract trade division as a startup, with a conservative forecast for 2026 revenue between EUR 5 million and EUR 10 million [22] - The CEO selection process is ongoing, with interviews being conducted over weekends to expedite the decision [23] Q&A Session Summary Question: What are the expectations from the upcoming meeting with the government? - The management is working on a restructuring plan that includes rationalizing factory operations and negotiating workforce adjustments with the government and unions [9][11] Question: Will the company be profitable with the current revenue levels? - The target is to achieve profitability with a monthly turnover of EUR 28-29 million, focusing on cost reduction and margin improvement [13][15] Question: What is the progress in the commercial division? - The company is making significant investments in the trade contract business, with ongoing projects in Dubai and Jerusalem, and is optimistic about future opportunities [19][20] Question: What is the timeframe for the CEO selection? - The decision will be made soon, with ongoing interviews being conducted during weekends to find the right candidate [23]

Financial Data and Key Metrics Changes - The company improved its gross margin this quarter, surpassing levels recorded in the first two quarters of the year, attributed to a more favorable sales mix [4][5] - Sales of Natuzzi Italia grew by 18% compared to the third quarter of last year, while sales of unbranded products decreased by 20% [5] Business Line Data and Key Metrics Changes - The company is focusing on supporting branded sales that offer higher margins, as evidenced by the growth in Natuzzi Italia sales [5] - The closure of the Shanghai factory last year resulted in cost savings on industrial operations in China, although labor costs in Italy remain a challenge [5][6] Market Data and Key Metrics Changes - Consumer confidence remains weak, impacting foot traffic in stores, particularly in the United States and Europe, despite marketing investments [4][6] - The company is actively participating in international trade events to enhance brand visibility and customer engagement [6][7] Company Strategy and Development Direction - The company is committed to reducing fixed costs while supporting sales, and is in discussions with the Italian government for aid to improve production efficiency [6] - The management is treating the contract trade division as a startup, focusing on bidding for new projects and leveraging brand awareness [22][26] Management Comments on Operating Environment and Future Outlook - Management expressed concerns about the geopolitical situation affecting consumer confidence and store traffic, but remains optimistic about improving sales next year compared to 2025 [18][19] - The target for profitability is set at EUR 28-29 million per month, with a focus on cost reduction and margin improvement [16] Other Important Information - The company is in the final rounds of CEO selection, with ongoing interviews to find the right candidate [27] Q&A Session Summary Question: What are the expectations from the upcoming meeting with the government? - Management is working on restructuring plans, including reducing the number of factories and workforce adjustments, requiring government and union agreements [12][13] Question: What is the outlook for the commercial division? - The company is making significant investments in the trade contract business, with ongoing projects in Dubai and Jerusalem, and expects a conservative revenue forecast of EUR 5 million to EUR 10 million for 2026 [21][26] Question: Update on CEO selection process? - The decision on the new CEO will be made soon, with ongoing interviews being conducted during weekends [27]

SANTERAMO IN COLLE, Bari, Italy--(BUSINESS WIRE)--Natuzzi S.p.A. (NYSE: NTZ) ("we†, "Natuzzi†or the "Company†and, together with its subsidiaries, the "Group†), one of the most renowned brands in the production and distribution of design and luxury furniture, today reports its unaudited financial information for the third quarter and nine months ended September 30, 2025. Pasquale Natuzzi, Chairman and Chief Executive Officer ad interim of the Group, commented: "The business environment remains highly cha ...

Core Viewpoint - Investors are encouraged to consider La-Z-Boy (LZB) due to improving earnings estimates and positive short-term price momentum [1] Earnings Estimates - Analysts are increasingly optimistic about La-Z-Boy's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2] - The Zacks Rank system indicates strong agreement among analysts in raising earnings estimates, significantly increasing consensus estimates for the next quarter and full year [3] Current Quarter and Year Estimates - For the current quarter, La-Z-Boy is expected to earn $0.59 per share, reflecting a decrease of 13.2% from the previous year, but the consensus estimate has risen by 5.36% over the last 30 days with no negative revisions [6] - For the full year, the expected earnings are $2.65 per share, a decrease of 9.3% from the prior year, with a similar positive trend in estimate revisions as one estimate has increased without any negative changes [7] Zacks Rank and Performance - La-Z-Boy currently holds a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on favorable estimate revisions [8] - Stocks with Zacks Rank 1 and 2 have historically outperformed the S&P 500, suggesting a positive outlook for La-Z-Boy [8] Stock Performance - La-Z-Boy's stock has increased by 34.8% over the past four weeks due to strong estimate revisions, indicating potential for further upside [9]