Herman Miller Shares Sank: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of furniture designer Herman Miller (NAS: MLHR) are sinking today, down by 10%, after the company reported second-quarter earnings results that fell short of what the market was expecting.

So what: Revenue in the second quarter totaled $445.6 million, while earnings per share came in at $0.41. Sales fell short of the $452.7 million estimate and bottom-line profit was right on target with expectations.

Now what: Going forward, the company sees third-quarter sales in the range of $400 million to $420 million, which is far short of the $455.8 million that the Street is looking for. The company also expects gross margin in the coming quarter to tick down sequentially. CEO Brian Walker said, "Reduced order momentum this past quarter reflected pockets of weakness in some customer sectors driven by a reduction in large order volume compared to last year."

Interested in more info on Herman Miller? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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