Millerknoll Inc (MLKN)

MiillerKnoll (MLKN) stock dropped by 18.90% due to the softer-than-expected demand for its products. The company's third-quarter fiscal 2024 revenue dropped 11.4% to $872.3 million, missing forecasts. Despite adjusted earnings per share (EPS) of $0.45 being above estimates, the company's overall demand patterns were described as "sluggish."

• Reasons for the Drop in Demand: MillerKnoll attributed the drop in demand to several factors, including higher interest rates in major markets globally, ongoing geopolitical concerns, and a sluggish housing market in the U.S. The company's Americas Contract segment, which includes several brands such as Herman Miller and Geiger, saw a 9% decline in revenue to $441.1 million, with demand softer than expected due to minimal improvement in the economic landscape.
• Outlook and Forecast: Despite expecting an improvement in demand, MillerKnoll cautioned that "the persistence of inflationary pressures and high interest rates continues to weigh on both business and consumer sentiment." The company predicted current-quarter sales to be between $880 million and $920 million, with adjusted EPS in a range of $0.49 to $0.57, all of which were lower than analysts' expectations. Full-year adjusted EPS was forecasted at $1.90 to $1.98.