EAST GREENVILLE, Pa. - Knoll Inc. (NYSE:KNL) posted a 21.2 percent profit growth over its 3rd quarter – supported by robust office furniture sales.
The office and home furniture giant is trading nearly 15 percent higher as of late last week, with its share price sitting $3.07 higher than it was at the beginning of the week. The stock’s volume reached 400,000 shares since trading began, up from an average of 350,000 shares per day.
“Improvement in Q3 was due to particularly strong performance by our office segment,” said CEO Andrew Cogan in the company’s third quarter earnings conference call. “Here, growth of just over 15 percent was driven by complementary product categories we’ve been investing in, in core systems product. This growth combined with productivity improvements in our plans more than offset incremental pricing pressures and resulted in significant gross margin expansion.”
Earnings posted were $21.6 million, compared to $17.8 million over the same period last year. Knoll also reached net sales of $292.1 million for the quarter, a 10.8 percent increase over 2015. Net sales of the company’s office segment climbed over 15 percent to $185.8 million, its largest segment jump.
“In the face of a more mixed demand environment across our various end markets we are pleased to be reporting better than industry growth and continued margin and operating profit expansion,” continued Cogan.
Knoll, headquartered in East Greenville, Pennsylvania, operates six manufacturing facilities totaling 2.5 million square feet around North America. The company runs eight divisions and employs nearly 4,000. The company manufactures office furniture, home furniture and textiles.