MillerKnoll, Inc. (NASDAQ:MLKN) shares were trading more than 7% higher pre-market following the company’s reported Q3 results, with EPS of $0.28 coming in slightly better than the consensus estimate of $0.27. Revenue was $1.03 billion, in-line with the consensus estimate.

Demand trends remained robust with orders growing organically by 20.3% year-over-year, driven by growth across all segments. To little surprise, inflation and supply chain headwinds persisted throughout the quarter, which drove a 640bp year-over-year decline in gross margin. However, management noted that supply chain constraints began to ease during the second half of Q3, and expects pricing actions to continue benefiting margins in the coming quarters.

The company provided its Q4/22 outlook, expecting EPS in the range of $0.46-$0.52, compared to the consensus of $0.49, and revenue in the range of $1.075-1.115 billion, compared to the consensus of $1.03 billion.

Analysts at Berenberg Bank said they continue to take a positive view on the company, as they expect demand to remain strong and macro headwinds to ease.