(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
Dated: | March 18, 2020 | HERMAN MILLER, INC. | ||
(Registrant) | ||||
By: | /s/ Kevin J. Veltman Kevin J. Veltman | |||
Vice President of Investor Relations & Treasurer (Duly Authorized Signatory for Registrant) |
• | Net sales growth of 8% over prior year |
• | Operating margins 10 basis points lower than prior year (110 basis points higher on adjusted basis) |
• | Robust cash flow generation and a strong balance sheet |
Release | Immediate |
Date | March 18, 2020 |
Contact | Kevin Veltman (616) 654-3973 or kevin_veltman@hermanmiller.com |
Jeff Stutz (616) 654-8538 or jeff_stutz@hermanmiller.com | |
Media (616) 654-5977 or media_relations@hermanmiller.com | |
Address | Herman Miller, Inc., 855 East Main Avenue, PO Box 302, Zeeland, MI 49464-0302 |
Internet | www.hermanmiller.com |
FINANCIAL HIGHLIGHTS | ||||||||||||||||
(Dollars in millions, except per share data) | (Unaudited) | (Unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
February 29, 2020 | March 2, 2019 | % Chg. | February 29, 2020 | March 2, 2019 | % Chg. | |||||||||||
Net Sales | $ | 665.7 | $ | 619.0 | 7.5 | % | $ | 2,010.8 | $ | 1,896.2 | 6.0 | % | ||||
Gross Margin % | 36.5 | % | 35.7 | % | N/A | 37.0 | % | 36.0 | % | N/A | ||||||
Operating Expenses | $ | 189.4 | $ | 172.9 | 9.5 | % | $ | 562.3 | $ | 533.1 | 5.5 | % | ||||
Restructuring Expense | $ | 3.5 | $ | 0.3 | 1,066.7 | % | $ | 9.6 | $ | 1.7 | 464.7 | % | ||||
Operating Earnings % | 7.6 | % | 7.7 | % | N/A | 8.6 | % | 7.7 | % | N/A | ||||||
Adjusted Operating Earnings %* | 9.0 | % | 7.9 | % | N/A | 9.5 | % | 8.4 | % | N/A | ||||||
Net Earnings Attributable to Herman Miller, Inc. | $ | 37.7 | $ | 39.2 | (3.8 | )% | $ | 164.5 | $ | 114.5 | 43.7 | % | ||||
Earnings Per Share – Diluted | $ | 0.64 | $ | 0.66 | (3.0 | )% | $ | 2.78 | $ | 1.92 | 44.8 | % | ||||
Adjusted Earnings Per Share – Diluted* | $ | 0.74 | $ | 0.64 | 15.6 | % | $ | 2.47 | $ | 2.09 | 18.2 | % | ||||
Orders | $ | 651.7 | $ | 612.8 | 6.3 | % | $ | 2,003.3 | $ | 1,950.4 | 2.7 | % | ||||
Backlog | $ | 411.2 | $ | 400.5 | 2.7 | % | ||||||||||
*Items indicated represent Non-GAAP measurements; see the reconciliations of Non-GAAP financial measures and related explanations in the supplemental data file available for download at http://www.hermanmiller.com/about-us/investors.html. A copy of this supplemental data file has also been included with the earnings press release filed on Form 8-K with the Securities and Exchange Commission. |
Organic Sales Growth by Segment * | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
February 29, 2020 | March 2, 2019 | |||||||||||||||||||||||
North America | International | Retail | Total | North America | International | Retail | Total | |||||||||||||||||
Net Sales, as reported | $ | 413.4 | $ | 156.1 | $ | 96.2 | $ | 665.7 | $ | 397.0 | $ | 126.0 | $ | 96.0 | $ | 619.0 | ||||||||
% change from PY | 4.1 | % | 23.9 | % | 0.2 | % | 7.5 | % | ||||||||||||||||
Proforma Adjustments | ||||||||||||||||||||||||
Acquisitions | (6.4 | ) | (44.0 | ) | — | (50.4 | ) | — | — | — | — | |||||||||||||
Currency Translation Effects (1) | (0.2 | ) | 0.8 | — | 0.6 | — | — | — | — | |||||||||||||||
Net Sales, organic | $ | 406.8 | $ | 112.9 | $ | 96.2 | $ | 615.9 | $ | 397.0 | $ | 126.0 | $ | 96.0 | $ | 619.0 | ||||||||
% change from PY | 2.5 | % | (10.4 | )% | 0.2 | % | (0.5 | )% |
Organic Order Growth by Segment * | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
February 29, 2020 | March 2, 2019 | |||||||||||||||||||||||
North America | International | Retail | Total | North America | International | Retail | Total | |||||||||||||||||
Orders, as reported | $ | 405.9 | $ | 159.4 | $ | 86.4 | $ | 651.7 | $ | 390.9 | $ | 127.0 | $ | 94.9 | $ | 612.8 | ||||||||
% change from PY | 3.8 | % | 25.5 | % | (9.0 | )% | 6.3 | % | ||||||||||||||||
Proforma Adjustments | ||||||||||||||||||||||||
Acquisitions | (5.9 | ) | (42.3 | ) | — | (48.2 | ) | — | — | — | — | |||||||||||||
Currency Translation Effects (1) | (0.2 | ) | 0.8 | — | 0.6 | — | — | — | — | |||||||||||||||
Orders, organic | $ | 399.8 | $ | 117.9 | $ | 86.4 | $ | 604.1 | $ | 390.9 | $ | 127.0 | $ | 94.9 | $ | 612.8 | ||||||||
% change from PY | 2.3 | % | (7.2 | )% | (9.0 | )% | (1.4 | )% | ||||||||||||||||
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to the comparable prior year period | ||||||||||||||||||||||||
* Items represent Non-GAAP measurements; see the reconciliations of Non-GAAP financial measures and related explanations in the supplemental data file available for download at http://www.hermanmiller.com/about-us/investors.html. A copy of this supplemental data file has also been included with the earnings press release filed on Form 8-K with the Securities and Exchange Commission. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
February 29, 2020 | March 2, 2019 | February 29, 2020 | March 2, 2019 | ||||||||||||||||||
Net Sales | $ | 665.7 | 100.0 | % | $ | 619.0 | 100.0 | % | $ | 2,010.8 | 100.0 | % | $ | 1,896.2 | 100.0 | % | |||||
Cost of Sales | 422.4 | 63.5 | % | 398.0 | 64.3 | % | 1,265.9 | 63.0 | % | 1,214.5 | 64.0 | % | |||||||||
Gross Margin | 243.3 | 36.5 | % | 221.0 | 35.7 | % | 744.9 | 37.0 | % | 681.7 | 36.0 | % | |||||||||
Operating Expenses | 189.4 | 28.5 | % | 172.9 | 27.9 | % | 562.3 | 28.0 | % | 533.1 | 28.1 | % | |||||||||
Restructuring Expense | 3.5 | 0.5 | % | 0.3 | — | % | 9.6 | 0.5 | % | 1.7 | 0.1 | % | |||||||||
Operating Earnings | 50.4 | 7.6 | % | 47.8 | 7.7 | % | 173.0 | 8.6 | % | 146.9 | 7.7 | % | |||||||||
Gain on Consolidation of Equity Method Investments | — | — | % | — | — | % | 30.5 | 1.5 | % | — | — | % | |||||||||
Other Expenses, net | 2.8 | 0.4 | % | 2.2 | 0.4 | % | 7.5 | 0.4 | % | 7.8 | 0.4 | % | |||||||||
Earnings Before Income Taxes and Equity Income | 47.6 | 7.2 | % | 45.6 | 7.4 | % | 196.0 | 9.7 | % | 139.1 | 7.3 | % | |||||||||
Income Tax Expense | 10.6 | 1.6 | % | 7.3 | 1.2 | % | 35.8 | 1.8 | % | 27.3 | 1.4 | % | |||||||||
Equity Income, net of tax | 0.3 | — | % | 1.0 | 0.2 | % | 3.7 | 0.2 | % | 2.8 | 0.1 | % | |||||||||
Net Earnings | 37.3 | 5.6 | % | 39.3 | 6.3 | % | 163.9 | 8.2 | % | 114.6 | 6.0 | % | |||||||||
Net Earnings Attributable to Redeemable Noncontrolling Interests | (0.4 | ) | (0.1 | )% | 0.1 | — | % | (0.6 | ) | — | % | 0.1 | — | % | |||||||
Net Earnings Attributable to Herman Miller, Inc. | $ | 37.7 | 5.7 | % | $ | 39.2 | 6.3 | % | $ | 164.5 | 8.2 | % | $ | 114.5 | 6.0 | % | |||||
Amounts per Common Share Attributable to Herman Miller, Inc. | |||||||||||||||||||||
Earnings Per Share – Basic | $0.64 | $0.67 | $2.79 | $1.94 | |||||||||||||||||
Weighted Average Basic Common Shares | 58,940,060 | 58,838,958 | 58,970,264 | 59,087,899 | |||||||||||||||||
Earnings Per Share – Diluted | $0.64 | $0.66 | $2.78 | $1.92 | |||||||||||||||||
Weighted Average Diluted Common Shares | 59,218,101 | 59,127,258 | 59,266,929 | 59,448,294 |
Nine Months Ended | ||||||
February 29, 2020 | March 2, 2019 | |||||
Net Earnings | $ | 163.9 | $ | 114.6 | ||
Net Cash Provided by Operating Activities | 191.8 | 130.6 | ||||
Net Cash Used in Investing Activities | (171.3 | ) | (142.4 | ) | ||
Net Cash Used in Financing Activities | (69.8 | ) | (76.6 | ) | ||
Effect of Exchange Rates | 0.7 | (2.0 | ) | |||
Change in Cash | (48.6 | ) | (90.4 | ) | ||
Cash and Cash Equivalents, Beginning of Period | 159.2 | 203.9 | ||||
Cash and Cash Equivalents, End of Period | $ | 110.6 | $ | 113.5 |
February 29, 2020 | June 1, 2019 | |||||
Assets | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 110.6 | $ | 159.2 | ||
Short-term investments | 8.9 | 8.8 | ||||
Accounts and notes receivable, net | 221.7 | 218.0 | ||||
Unbilled accounts receivable | 37.9 | 34.3 | ||||
Inventories, net | 200.5 | 184.2 | ||||
Prepaid expenses and other | 56.7 | 56.8 | ||||
Total Current Assets | 636.3 | 661.3 | ||||
Net property and equipment | 341.6 | 348.6 | ||||
Right of use assets | 222.9 | — | ||||
Other assets | 785.0 | 559.4 | ||||
Total Assets | $ | 1,985.8 | $ | 1,569.3 | ||
Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity | ||||||
Current Liabilities: | ||||||
Accounts payable | $ | 180.6 | $ | 177.7 | ||
Accrued liabilities | 325.5 | 268.4 | ||||
Total Current Liabilities | 506.1 | 446.1 | ||||
Long-term debt | 275.0 | 281.9 | ||||
Lease liabilities | 188.5 | — | ||||
Other liabilities | 107.7 | 101.5 | ||||
Total Liabilities | 1,077.3 | 829.5 | ||||
Redeemable Noncontrolling Interests | 71.7 | 20.6 | ||||
Stockholders' Equity | 836.8 | 719.2 | ||||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity | $ | 1,985.8 | $ | 1,569.3 |
Herman Miller, Inc. (together with its consolidated subsidiaries, the "Company", "we", "our" or "us") provides this supplement to assist investors in evaluating the Company's financial and operating results and metrics. We suggest that the narratives to each of the tables included in this supplement be read in conjunction with the financial tables. The financial information included in this supplement contains certain non-GAAP financial measures, as explained in more detail below. |
Three Months Ended | Nine Months Ended | |||||||||||
February 29, 2020 | March 2, 2019 | February 29, 2020 | March 2, 2019 | |||||||||
Earnings per Share - Diluted | $ | 0.64 | $ | 0.66 | $ | 2.78 | $ | 1.92 | ||||
Add: Adjustments Related to Adoption of U.S. Tax Cuts and Jobs Act | — | (0.03 | ) | — | (0.02 | ) | ||||||
Add: Inventory step up on HAY equity method investment, after tax | — | — | — | 0.01 | ||||||||
Less: Gain on consolidation of equity method investments | — | — | (0.51 | ) | — | |||||||
Add: Special charges, after tax | 0.06 | 0.01 | 0.08 | 0.15 | ||||||||
Add: Restructuring expense, after tax | 0.04 | — | 0.12 | 0.03 | ||||||||
Adjusted Earnings per Share - Diluted | $ | 0.74 | $ | 0.64 | $ | 2.47 | $ | 2.09 | ||||
Weighted Average Shares Outstanding (used for Calculating Adjusted Earnings per Share) – Diluted | 59,218,101 | 59,127,258 | 59,266,929 | 59,448,294 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
February 29, 2020 | March 2, 2019 | February 29, 2020 | March 2, 2019 | |||||||||||||||||
North America Contract | ||||||||||||||||||||
Net Sales | $ | 413.4 | 100.0 | % | $ | 397.0 | 100.0 | % | $ | 1,322.5 | 100.0 | % | $ | 1,252.8 | 100.0 | % | ||||
Gross Margin | 150.1 | 36.3 | % | 136.6 | 34.4 | % | 487.0 | 36.8 | % | 436.3 | 34.8 | % | ||||||||
Total Operating Expenses | 98.9 | 23.9 | % | 96.4 | 24.3 | % | 310.6 | 23.5 | % | 296.8 | 23.7 | % | ||||||||
Operating Earnings | 51.2 | 12.4 | % | 40.2 | 10.1 | % | 176.4 | 13.3 | % | 139.5 | 11.1 | % | ||||||||
Adjustments | ||||||||||||||||||||
Special Charges | 0.4 | 0.1 | % | — | — | % | 0.7 | 0.1 | % | — | — | % | ||||||||
Restructuring | 1.4 | 0.3 | % | — | — | % | 6.9 | 0.5 | % | — | — | % | ||||||||
Adjusted Operating Earnings | $ | 53.0 | 12.8 | % | $ | 40.2 | 10.1 | % | $ | 184.0 | 13.9 | % | $ | 139.5 | 11.1 | % | ||||
International Contract | ||||||||||||||||||||
Net Sales | $ | 156.1 | 100.0 | % | $ | 126.0 | 100.0 | % | $ | 388.1 | 100.0 | % | $ | 359.9 | 100.0 | % | ||||
Gross Margin | 50.8 | 32.5 | % | 42.1 | 33.4 | % | 130.9 | 33.7 | % | 119.9 | 33.3 | % | ||||||||
Total Operating Expenses | 39.5 | 25.3 | % | 25.8 | 20.5 | % | 93.6 | 24.1 | % | 79.2 | 22.0 | % | ||||||||
Operating Earnings | 11.3 | 7.2 | % | 16.3 | 12.9 | % | 37.3 | 9.6 | % | 40.7 | 11.3 | % | ||||||||
Adjustments | ||||||||||||||||||||
Special Charges | 5.0 | 3.2 | % | — | — | % | 5.0 | 1.3 | % | 0.2 | 0.1 | % | ||||||||
Restructuring | 0.4 | 0.3 | % | 0.3 | 0.2 | % | 1.0 | 0.3 | % | 1.7 | 0.5 | % | ||||||||
Adjusted Operating Earnings | $ | 16.7 | 10.7 | % | $ | 16.6 | 13.2 | % | $ | 43.3 | 11.2 | % | $ | 42.6 | 11.8 | % | ||||
Retail | ||||||||||||||||||||
Net Sales | $ | 96.2 | 100.0 | % | $ | 96.0 | 100.0 | % | $ | 300.2 | 100.0 | % | $ | 283.5 | 100.0 | % | ||||
Gross Margin | 42.4 | 44.1 | % | 42.3 | 44.1 | % | 127.0 | 42.3 | % | 125.5 | 44.3 | % | ||||||||
Total Operating Expenses | 44.0 | 45.7 | % | 40.0 | 41.7 | % | 133.4 | 44.4 | % | 119.2 | 42.0 | % | ||||||||
Operating (Loss) Earnings | (1.6 | ) | (1.7 | )% | 2.3 | 2.4 | % | (6.4 | ) | (2.1 | )% | 6.3 | 2.2 | % | ||||||
Adjustments | ||||||||||||||||||||
Restructuring | 1.7 | 1.8 | % | — | — | % | 1.7 | 0.6 | % | — | — | % | ||||||||
Adjusted Operating (Loss) Earnings | $ | 0.1 | 0.1 | % | $ | 2.3 | 2.4 | % | $ | (4.7 | ) | (1.6 | )% | $ | 6.3 | 2.2 | % | |||
Corporate | ||||||||||||||||||||
Operating Loss | $ | (10.5 | ) | — | % | $ | (11.0 | ) | — | % | $ | (34.3 | ) | — | % | (39.6 | ) | — | % | |
Adjustments | ||||||||||||||||||||
Special Charges | 0.7 | — | % | 0.5 | — | % | 1.9 | — | % | 11.1 | — | % | ||||||||
Adjusted Operating Loss | $ | (9.8 | ) | — | % | $ | (10.5 | ) | — | % | $ | (32.4 | ) | — | % | $ | (28.5 | ) | — | % |
Herman Miller, Inc. | ||||||||||||||||||||
Net Sales | $ | 665.7 | 100.0 | % | $ | 619.0 | 100.0 | % | $ | 2,010.8 | 100.0 | % | $ | 1,896.2 | 100.0 | % | ||||
Gross Margin | 243.3 | 36.5 | % | 221.0 | 35.7 | % | 744.9 | 37.0 | % | 681.7 | 36.0 | % | ||||||||
Total Operating Expenses | 192.9 | 29.0 | % | 173.2 | 28.0 | % | 571.9 | 28.4 | % | 534.8 | 28.2 | % | ||||||||
Operating Earnings | 50.4 | 7.6 | % | 47.8 | 7.7 | % | 173.0 | 8.6 | % | 146.9 | 7.7 | % | ||||||||
Adjustments | ||||||||||||||||||||
Special Charges | 6.1 | 0.9 | % | 0.5 | 0.1 | % | 7.6 | 0.4 | % | 11.3 | 0.6 | % | ||||||||
Restructuring | 3.5 | 0.5 | % | 0.3 | — | % | 9.6 | 0.5 | % | 1.7 | 0.1 | % | ||||||||
Adjusted Operating Earnings | $ | 60.0 | 9.0 | % | $ | 48.6 | 7.9 | % | $ | 190.2 | 9.5 | % | $ | 159.9 | 8.4 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
February 29, 2020 | March 2, 2019 | February 29, 2020 | March 2, 2019 | |||||||||||||||||
Gross Margin | $ | 243.3 | 36.5 | % | $ | 221.0 | 35.7 | % | $ | 744.9 | 37.0 | % | $ | 681.7 | 36.0 | % | ||||
Special Charges | 1.4 | 0.3 | % | — | — | % | 1.4 | 0.1 | % | — | — | % | ||||||||
Adjusted Gross Margin | $ | 244.7 | 36.8 | % | $ | 221.0 | 35.7 | % | $ | 746.3 | 37.1 | % | $ | 681.7 | 36.0 | % |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
February 29, 2020 | March 2, 2019 | |||||||||||||||||||||||
North America | International | Retail | Total | North America | International | Retail | Total | |||||||||||||||||
Net Sales, as reported | $ | 413.4 | $ | 156.1 | $ | 96.2 | $ | 665.7 | $ | 397.0 | $ | 126.0 | $ | 96.0 | $ | 619.0 | ||||||||
% change from PY | 4.1 | % | 23.9 | % | 0.2 | % | 7.5 | % | ||||||||||||||||
Proforma Adjustments | ||||||||||||||||||||||||
Acquisitions | (6.4 | ) | (44.0 | ) | — | (50.4 | ) | — | — | — | — | |||||||||||||
Currency Translation Effects (1) | (0.2 | ) | 0.8 | — | 0.6 | — | — | — | — | |||||||||||||||
Net Sales, organic | $ | 406.8 | $ | 112.9 | $ | 96.2 | $ | 615.9 | $ | 397.0 | $ | 126.0 | $ | 96.0 | $ | 619.0 | ||||||||
% change from PY | 2.5 | % | (10.4 | )% | 0.2 | % | (0.5 | )% |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
February 29, 2020 | March 2, 2019 | |||||||||||||||||||||||
North America | International | Retail | Total | North America | International | Retail | Total | |||||||||||||||||
Net Sales, as reported | $ | 1,322.5 | $ | 388.1 | $ | 300.2 | $ | 2,010.8 | $ | 1,252.8 | $ | 359.9 | $ | 283.5 | $ | 1,896.2 | ||||||||
% change from PY | 5.6 | % | 7.8 | % | 5.9 | % | 6.0 | % | ||||||||||||||||
Proforma Adjustments | ||||||||||||||||||||||||
Acquisitions | (8.9 | ) | (45.0 | ) | — | (53.9 | ) | — | — | — | — | |||||||||||||
Currency Translation Effects (1) | 0.3 | 4.2 | 0.1 | 4.6 | — | — | — | — | ||||||||||||||||
Net Sales, organic | $ | 1,313.9 | $ | 347.3 | $ | 300.3 | $ | 1,961.5 | $ | 1,252.8 | $ | 359.9 | $ | 283.5 | $ | 1,896.2 | ||||||||
% change from PY | 4.9 | % | (3.5 | )% | 5.9 | % | 3.4 | % | ||||||||||||||||
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to the comparable prior year period |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
February 29, 2020 | March 2, 2019 | |||||||||||||||||||||||
North America | International | Retail | Total | North America | International | Retail | Total | |||||||||||||||||
Orders, as reported | $ | 405.9 | $ | 159.4 | $ | 86.4 | $ | 651.7 | $ | 390.9 | $ | 127.0 | $ | 94.9 | $ | 612.8 | ||||||||
% change from PY | 3.8 | % | 25.5 | % | (9.0 | )% | 6.3 | % | ||||||||||||||||
Proforma Adjustments | ||||||||||||||||||||||||
Acquisitions | (5.9 | ) | (42.3 | ) | — | (48.2 | ) | — | — | — | — | |||||||||||||
Currency Translation Effects (1) | (0.2 | ) | 0.8 | — | 0.6 | — | — | — | — | |||||||||||||||
Orders, organic | $ | 399.8 | $ | 117.9 | $ | 86.4 | $ | 604.1 | $ | 390.9 | $ | 127.0 | $ | 94.9 | $ | 612.8 | ||||||||
% change from PY | 2.3 | % | (7.2 | )% | (9.0 | )% | (1.4 | )% |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
February 29, 2020 | March 2, 2019 | |||||||||||||||||||||||
North America | International | Retail | Total | North America | International | Retail | Total | |||||||||||||||||
Orders, as reported | $ | 1,309.5 | $ | 402.4 | $ | 291.4 | $ | 2,003.3 | $ | 1,273.7 | $ | 389.3 | $ | 287.4 | $ | 1,950.4 | ||||||||
% change from PY | 2.8 | % | 3.4 | % | 1.4 | % | 2.7 | % | ||||||||||||||||
Proforma Adjustments | ||||||||||||||||||||||||
Acquisitions | (8.4 | ) | (42.3 | ) | — | (50.7 | ) | — | — | — | — | |||||||||||||
Currency Translation Effects (1) | 0.3 | 4.3 | 0.1 | 4.7 | — | — | — | — | ||||||||||||||||
Orders, organic | $ | 1,301.4 | $ | 364.4 | $ | 291.5 | $ | 1,957.3 | $ | 1,273.7 | $ | 389.3 | $ | 287.4 | $ | 1,950.4 | ||||||||
% change from PY | 2.2 | % | (6.4 | )% | 1.4 | % | 0.4 | % | ||||||||||||||||
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to the comparable prior year period. |
Studio Count | Studio Selling Square Footage | |||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||
2/29/20 | 3/2/19 | 2/29/20 | 3/2/19 | 2/29/20 | 3/2/19 | 2/29/20 | 3/2/19 | |||||||||
Beginning of Period | 35 | 33 | 36 | 32 | 382,752 | 369,215 | 389,247 | 357,387 | ||||||||
Studio Openings | — | — | 1 | 2 | — | — | 8,730 | 17,878 | ||||||||
Studio Expansions (Reductions) | — | — | — | — | — | — | — | (3,300 | ) | |||||||
Studio Closings | — | — | (2 | ) | (1 | ) | — | — | (15,225 | ) | (2,750 | ) | ||||
End of Period | 35 | 33 | 35 | 33 | 382,752 | 369,215 | 382,752 | 369,215 | ||||||||
Comparable Studios, End of Period* | 31 | 30 | 29 | 27 | ||||||||||||
Non-Comparable Studios, End of Period | 4 | 3 | 6 | 6 |
Studio Revenue Metrics | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2/29/20 | 3/2/19 | 2/29/20 | 3/2/19 | |||||||||
Average Studio Square Footage | 382,752 | 369,215 | 386,000 | 363,301 | ||||||||
Annualized Net Sales per Square Foot, All Studios | $ | 471 | $ | 492 | $ | 494 | $ | 521 | ||||
DWR Comparable Brand Sales* | 1.4 | % | 1.3 | % | 2.8 | % | 4.8 | % | ||||
Annualized Net Sales per Square Foot, Comparable Studios* | $ | 476 | $ | 502 | $ | 507 | $ | 553 | ||||
*DWR comparable brand sales reflects the year-over-year change in net sales across the multiple channels that DWR serves, including studios, outlets, contract, catalog, phone and e-commerce. Comparable studios reflect studios that were fully operational for the applicable current and prior year periods. |
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, that are based on management’s beliefs, assumptions, current expectations, estimates, and projections about the office furniture industry, the economy, and the Company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” "likely,” “plans,” “projects,” and “should,” variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. These risks include, without limitation, the success of our growth strategy, our success in initiatives aimed at achieving long-term profit optimization goals, employment and general economic conditions, the pace of economic recovery in the U.S. and in our International markets, the increase in white-collar employment, the willingness of customers to undertake capital expenditures, the types of products purchased by customers, competitive-pricing pressures, the availability and pricing of raw materials, our reliance on a limited number of suppliers, our ability to expand globally given the risks associated with regulatory and legal compliance challenges and accompanying currency fluctuations, changes in future tax legislation or interpretation of current tax legislation, the ability to increase prices to absorb the additional costs of raw materials, changes in global tariff regulations, the financial strength of our dealers and the financial strength of our customers, our ability to locate new studios, negotiate favorable lease terms for new and existing locations and implement our studio portfolio transformation, our ability to attract and retain key executives and other qualified employees, our ability to continue to make product innovations, the success of newly-introduced products, our ability to serve all of our markets, possible acquisitions, divestitures or alliances, our ability to integrate and benefit from acquisitions and investments, the pace and level of government procurement, the outcome of pending litigation or governmental audits or investigations, political risk in the markets we serve, natural disasters, public health crises, disease outbreaks, and other risks identified in our filings with the Securities and Exchange Commission. Therefore, actual results and outcomes may materially differ from what we express or forecast. Furthermore, Herman Miller, Inc. undertakes no obligation to update, amend or clarify forward-looking statements. |