Millerknoll Stock Earnings Reports

MillerKnoll reported a stronger-than-expected Q2 driven by consistent order growth across all segments, retail expansion, product innovation, and improving demand in contract (especially return-to-office and healthcare). Consolidated Q2 adjusted EPS was $0.43, consolidated net sales were $955M (down modestly year-over-year on a reported basis but up on a normalized view), and orders were $973M (up ~4.5% organically). Gross margin was strong at 39% with only minimal tariff-related costs; management expects proactive pricing and tariff mitigation to fully offset tariff impacts to gross margin and EPS in H2. Retail momentum was notable: North America retail orders +8% and comparable sales +8% (with strong holiday/cyber results and multiple DWR/Herman Miller records), and the company plans to open 14–16 net new U.S. stores this fiscal year as it pursues a multi-year plan to double its DWR and Herman Miller store footprint. North America Contract showed mid-single-digit order growth and improving dealer/booking momentum, with strength in class-A office markets and resilient sectors (healthcare, professional services). International orders improved though sales were lumpier. The company generated $65M in operating cash flow in the quarter, ended with $548M liquidity, and net debt/EBITDA was ~2.87x; management targets reducing leverage toward ~2.0–2.5x while prioritizing growth investments and debt repayment. Q3 guidance: net sales $923–963M, gross margin 37.9–38.9%, adjusted diluted EPS $0.42–0.48; incremental operating expense of ~$5–6M in Q3 (and similar in Q4) related to new store investments.