MLHR - Earnings call transcript Q2 2021

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Operator

Good morning, and welcome to the Herman Miller's Second Quarter Earnings Conference Call.

As a reminder, this call is being recorded. I would now like to introduce your host for today’s conference, Kevin Veltman, Vice President of Investor Relations and Treasurer.

Kevin Veltman

Good morning, everyone.

Joining me today on our second quarter earnings call are Andi Owen, our President and Chief Executive Officer; Jeff Stutz, our Chief Financial Officer; John Michael, President of North America Contract; Debbie Propst, President of Herman Miller Retail and Ben Groom, our Chief Digital Officer. the we to our format adapt our remarks quarter, quarterly to that last prepared release, press to on to have approach changed the replaces Similar call. conference shareholder letter allows approach this on timely investors and provides We for believe questions both more call. information more for and the dialog

amounts press release on reconciled Investor are non-GAAP well. we have Relations on have presented at hermanmiller.com. We a press release posted Website GAAP within and non-GAAP the yesterday's as figures our the Wherever any basis,

Before forward-looking I everyone we would like that this today's Q&A begin session, to call statements. remind will include

obligation For information release, this are Any the that we on refer questions. operator as Today's differ future on cause and update begin well factors your statements, to the forward-looking these these statements assumptions to date annual statements is or actual to filings. as and With call results I'll undertake materially please that scheduled minutes. based we a of SEC information to today events. take forward-looking to the of back XX over make as could press that, and new earnings no our from we'll result as call for turn quarterly

Operator

with Company. from comes line instructions] first Our [Operator question of Sidoti Greg the Burns &

Your ahead. is line open. Please go

Greg Burns

you this of retail and weeks maybe side you. Could the order into both the and first turns Thank talking couple morning. start Good about on some off contract throughout the these quarter quarter? the insight

Jeff Stutz

Yeah, you. Good I to for This that morning, want Greg. is caste Jeff. [ph]

-- down third you down idea, order consolidated of moved November as trends close quarter, half on with couple trended the of improved weeks of thought we teen X% improvement mid down between the of we towards of portion in closer to in an XX%. saw month give X% of average. X% kind back we the kind at the That for September what and quarter, total in down and were level, of to the what we the to So the back and October around group in the we in percentages that first the

Greg Burns

the there is notable And any Okay. kind trends level, there? at of segment

Debbie Propst

We have XX trends Good and trends can and a it and September, then crossed have Debbie. our morning. crossed In This period I interesting bridge discuss. is order XX, QX we order November retail big in a will that we in plus of October some cyber holiday XX spike QX. saw

orders physical into really of in saw and we're strong pertaining QX first couple to million of of weeks backlog with backlog strong in retail of ahead $XX cyber. So the our coming well those QX

Greg Burns

question, Okay. leaves me for Great my next the last and order side couple was the I quarters. guess growth I consolidated guess order to for XX% up then the retail

would bit the to ask So be this a stronger growth maybe little I thought quarter. even be

revenue quarter limitations may growth see for curtailed quarter, supply bit the we and reaccelerate. the So be you look as this sounds based it might on order there maybe was revenue the backlog third that any into constraints like growth and or little pilot then a

be If any you that us that, can give will on color helpful.

Debbie Propst

campaign October been growth order monthly shift ahead three marketing that for aggressive XX% or we December, really good from feel and January the for typically our Well past. in a growth perspective retail about the quarter of segment last the in year specifically from we November, November haven’t was the and into

to activating campaigning our new and September what as initiatives some we So across from November and we're into build new bill as October and nice digital strategies. market our some marketing, some tax of that go of also seeing growth executing and

a just quarter product seeing little to we're bit might business the in quarter. purchasing residential in the to you our what strength it grew that growth is the like rebounded in quarter the indicative helpful channel our purchasing trade interior segment that's QX retail and continued obviously consumer consumer this feel XX% the orders we for throughout be for So the the designers break the channel Greg of The in saw in on roughly at actually residential XX we behalf XX% residential quarter grew. themselves trade and consumer then of grew our

seeing billings improve build that's the really a wholesale So we're segment nice on. good start and see continue to to [ph]. we But feeling architectural we and consumer as about can start we're trends to in like feel you improve time the our

Jeff Stutz

And Greg, this Jeff. is

all the you, change we North October and look rebounded I in there. of the Just one a down I way any but that the business to in throughout were notable American of wouldn't color quarter, got line an if segment bit, for in down order consistent kind through when pretty kind consistently would It the from fairly the was range you contract XX% say you at say little of XX% level draw more quarter. bit a perspective, deeper November trend kept

through November X% nice of bump quarter saw a X% edge to We order clearly customers is So bringing lot the hope, total because encouraging organic Polish order give full because up there. to of in we that quarter a for can down Still speak John us an which as very about leading we've inquiries orders said the on the an international leaves you moved organic one is last but depressed basis, that on activity. business, basis activities. to to I continue and activity want fact were We ways actually the the international thing in there see quarter highlight many in virus in conversations with orders.

very there trends the are So encouraging. very,

Greg Burns

can color of retail is at maybe sales we little seem the if the actually segment when brand look look at were from bit down. Great Okay. you in comparable give coming for then a -- on just growth us the and terms sales where you because of DWR

traditional it what Is coming brick-and-mortar through versus from coming channels DWR, within e-commerce? and between retail from? the the So split HermanMiller.com, growth where's is

Debbie Propst

typically to performance strong level Greg but the pleased in at brand from at XXX% also level, much we our is the then eCommerce performance really year, don't certainly we but studio. saw quarter see the we're but there to we with from really last the channel our break performance continue

order XX% XX%. was retail So year that over and typical down built despite last in was at locations the fact traffic

and made my So very research. in slight to and the conversion. at AOB studios We're coming improvement improvement into we're dedicated I've decision journey end still our validate seeing a of in on stores and the studio in customer the that seeing an stores traffic the

Greg Burns

are updating of I guess in terms you rest you of in I then of you in to Great of conversion lastly DWR in Okay. and Where [ph] know website changes e-commerce the hey.com order see the platforms benefit those rates updated have your numbers? the continued and the July. HermanMiller.com,

Jeff Stutz

site of tell Yeah the since in you a that Greg increase this. so new we we're pre-launch impressed really XX% I'll to that released performance the immediately July. on seen in take DWR.com I improvement significant with We've that conversion We've compared seeing in been can site. site. that conversion

site mentioned really new performing currently impressed track on We're and you Miller developing we're Herman with now rerelease So focusing on in how store. that site to the that is QX. we're

turn attention and going then So hay.com in that there we'll and is to lot a into our of financial that the relaunch work year. next

Operator

over and like Andi to remarks. questions further to no back showing the any conference I'm I'd turn further Owen for instructions] [Operator

Andi Owen

difficulty. a is there sorry, am I technical

want quarter [ph] Thanks updating continued call. hear us on you So We forward joining again and can at for on behalf your really and me wish you your a if Herman in holiday you. all and you to us this Miller families season. wonderful morning. Thank next to appreciate of I of the Miller, look interest Herman we

Operator

today's does day. the you Ladies may disconnect. and have gentlemen, a program and conference. you Everyone participating thank for great conclude This in

MillerKnoll (MLKN) 17 Dec 202021 Q2 Earnings call transcript