Herman Miller (MLHR) - Get Report shares advanced Thursday as the provider of home and office furnishings reported stronger-than-expected fiscal first-quarter net income and a better-than-expected outlook.
The Zeeland, Mich., company's shares were trading up 5.9% at $47.10.
For the quarter ended Aug. 31, Herman Miller earned 81 cents a share, up 35% from 60 cents in the year-earlier quarter. On an adjusted basis, the company earned 84 cents against 69 cents.
Sales in the quarter totaled $670.9 million, up 7.4% from $624.6 million a year earlier.
A survey of analysts by FactSet produced consensus estimates of profit of 77 cents, or an adjusted 78 cents, on $661 million of sales.
Gross profit margin widened 0.7 a percentage point to 36.7%.
New orders in the first quarter reached $676.7 million, 6.9% above a year earlier.
Regarding the tariffs put in place by President Donald Trump's administration, Chief Financial Officer Jeff Stutz said in a statement that Herman Miller is "taking action where we can in areas around pricing and supply chain." These efforts include taking advantage of lower commodity costs, he said.
And the results came in despite gross-margin pressure in the retail business, some of which is "transitory" and driven by the company's nearly complete move to a new 620,000-foot distribution facility, Stutz said.
The company expects fiscal 2020 second-quarter earnings per share to range from 85 cents to 89 cents as sales come in at $685 million to $705 million.
FactSet's survey was looking for profit of 83 cents, or an adjusted 85 cents, on sales of $683.6 million.