MillerKnoll(US:MLKN)2020-12-17 15:41Financial Data and Key Metrics Changes - The company reported an improvement in order trends, with a decline of mid-teen percentages in September and October, improving to around 9% in November [10] - Retail segment order growth was 41% ahead of last year, with a significant spike in November orders [14][15] - The international business showed encouraging trends, with organic orders up about 5% in November, leading to a total decline of 2% for the quarter [19] Business Line Data and Key Metrics Changes - Retail orders saw substantial growth, with consumer orders increasing by 84% and trade business orders growing by 14% [15] - The North American contract business remained consistent, with orders down 30% to 35% throughout the quarter [18] Market Data and Key Metrics Changes - E-commerce performance was strong, with a 220% increase compared to last year, while physical retail locations saw a 14% increase in orders despite a 35% decline in traffic [20][21] Company Strategy and Development Direction - The company is focusing on enhancing its e-commerce platforms, with significant improvements noted in conversion rates following the update of the DWR website [22] - Plans are in place to relaunch the Herman Miller store in Q4 and hay.com in the next financial year [22] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the order trends, particularly in the retail segment, and noted strong backlogs heading into Q3 [12][14] - There is hope for recovery in the North American contract business, with increased inquiries and customer conversations [18] Other Important Information - The company has shifted its quarterly press release format to a shareholder letter format to provide more timely information [4] Q&A Session Summary Question: Order trends throughout the quarter on both contract and retail sides - Management noted an improvement in consolidated order trends, with a decline of around 9% in the first weeks of Q3 [10] Question: Notable trends at the segment level - Retail segment saw order growth of 41%, with strong performance in consumer orders [14][15] Question: Supply constraints affecting revenue - Management indicated that while there were challenges, the backlog and order growth suggest potential revenue growth in Q3 [13] Question: Growth sources in the Retail segment - E-commerce was a significant driver, with a 220% increase, while physical retail locations also showed improvement [20] Question: Updates on e-commerce platforms - The DWR website update led to a 26% increase in conversion rates, with plans to update other platforms in the near future [22]