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Knoll Q2 net sales were $268.6 million

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Staff writer ▼ | July 20, 2015
Knoll announced results for the second quarter ended June 30, 2015. Net sales were $268.6 million for the quarter, an increase of 1% from second quarter of 2014.
Knoll
Knoll   Q2 operating profit $28.3 million
Operating profit for the quarter was $28.3 million, compared to operating profit of $22.2 million in the second quarter of 2014. Net earnings for the second quarter of 2015 was $17.2 million, an increase of 59.3% when compared with the second quarter of 2014.

Diluted earnings per share was $0.36 for the quarter compared to $0.23 per share in the prior year.

Net sales for the Office segment were $160.9 million during the second quarter of 2015, an increase of 1.1%, or 1.9% on a constant currency basis, when compared with the second quarter of 2014.

Increased sales in the Office segment were the result of improved systems sales year-over-year; this increase in systems sales was partially offset by lower storage sales. Net sales for the Studio segment were $77.8 million, an increase of $1.4 million, or 1.8%, when compared with the second quarter of 2014. On a constant currency basis, Studio sales increased by 6.8% from a year ago.

The increase in sales in the Studio segment was attributable to strong growth in North America and Holly Hunt. Net sales for the Coverings segment were $29.9 million, a decrease of (1.6%), or (0.7%) on a constant currency basis, when compared with the second quarter a year ago. Improved sales performance in our textiles business was offset by decreased sales in our leather businesses.

Gross profit for the second quarter of 2015 was $101.2 million, an increase of $3.9 million, or 4.0%, when compared with the same period in 2014. During the second quarter of 2015, gross margin (gross profit as a percentage of net sales) increased to 37.7% from 36.6% a year ago.

The increase in gross margin from the second quarter of 2014 mainly resulted from benefits achieved from net price realization and foreign exchange savings across our segments.

Operating expenses were $72.9 million, or 27.1% of net sales, compared to $75.0 million, or 28.2% of net sales, for the second quarter of 2014. Increased showroom expenses associated with our Holly Hunt business and higher pension expense were offset with foreign exchange savings, lower incentive accruals, and other cost containment savings. Operating expenses in the second quarter of 2014 included $0.2 million of restructuring charges.

Operating profit for the second quarter of 2015 was $28.3 million, or 10.5% of net sales. Operating profit for the second quarter of 2014 was $22.2 million, or 8.3% of net sales.

Operating profit for the Office segment was $9.1 million in the second quarter of 2015 compared to $6.4 million a year ago. Office segment operating margins increased year over year from 4.0% to 5.7%. Operating profit for the Studio segment was $12.1 million, an increase of $2.6 million, when compared with the second quarter of 2014.

Studio operating margins for the second quarter of 2015 and 2014 were 15.6% and 12.4%, respectively. Operating profit for the Coverings segment was $7.1 million for the second quarter of 2015 compared to operating profit of $6.3 million for the second quarter of 2014. Operating margins for the Coverings segment increased from 20.7% a year ago to 23.7% for the second quarter of 2015.

During the second quarter of 2015 and 2014, other (income) expense was $0.2 million and $2.7 million, respectively. Foreign exchange losses during the second quarter of 2015 and 2014 were $0.4 million and $2.4 million, respectively.

Other (income) expense for the second quarter of 2014 included $0.3 million of expense for the write-off of deferred financing fees related to the refinancing of our credit facility, which now matures in May 2019.


 

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