Millerknoll Stock Earnings Reports

MillerKnoll reported a strong start to fiscal 2026, with Q1 consolidated net sales of $956M (up ~11% reported, ~10% organic) and adjusted EPS of $0.45, 25% above prior year and above guidance midpoint. Performance was broad-based across segments: North America Contract sales grew ~12% (orders down vs. a pull-forward in prior Q4), International Contract sales rose ~14% reported (~11% organic), and Global Retail sales increased ~6%. Order activity was down year-over-year (consolidated orders $885M, down ~6% organically) largely due to $55–$60M of order pull-forward into fiscal 2025 related to a pre-announced tariff surcharge and price increase. Gross margin was 38.5% in Q1 and included about $8M of net tariff-related impacts; management expects tariffs to be a smaller net drag ($2–$4M) in Q2 and believes pricing/mitigation actions will offset tariff impacts in the second half of the year. Cash flow from operations was $9M and liquidity ended the quarter at $481M; net debt/EBITDA was 2.92x. Strategic and operational highlights: leadership changes (new board chair succession and promotion of Jeff Stutz to COO; Kevin Veltman interim CFO), aggressive North American retail expansion (opening 12–15 U.S. stores this fiscal year; Q1 opened 4 stores and web traffic +17% Y/Y), increased product newness (50% more new product vs. FY25 with new-product orders +20%), and product innovation (e.g., ESD Aeron for data center/clean-room use). Near-term pressures to retail margins include pre-opening costs for new stores, higher freight, and tariff-related mix effects, with retail operating margin pressured in Q1 (0.6% vs. 2.2% prior year). Q2 guidance: net sales $926M–$966M (midpoint $946M), gross margin 37.6%–38.6%, adjusted OPEX $300M–$310M, adj. EPS $0.38–$0.44; Q2 gross margin guidance includes $0.02–$0.04 per share net tariff impact. Management remains focused on product innovation, execution, cost discipline, and profitable growth while monitoring macro and tariff-related risks.