MillerKnoll Inc. (NASDAQ: MLKN), a growth-oriented small-cap value company in the industrial and consumer sectors, today reported results for the fourth quarter and full fiscal year 2026, ended May 30, 2026.
“We delivered a strong fourth quarter relative to the expectations we set coming into the period. These results reflect the advantages of a business purpose-built around geographic and channel diversity. It is a business anchored by exceptional talent, iconic brands, world-class manufacturing capabilities, and an incomparable network of contract dealers, retail stores, and wholesale partners. I am honored to be stepping into the interim CEO role at an important time for the Company, and I am eager to help lead this business alongside a deeply tenured and highly aligned team of senior leaders with a shared desire to elevate our performance as a company,” said Jeff Stutz, Chief Operating Officer and incoming interim CEO.
Stutz continued, “As we begin a new fiscal year, I am confident in our ability to execute our strategic vision with heightened discipline, drive improved profitability, and further strengthen our balance sheet, all with an eye toward improving long-term value creation.”
Fourth Quarter
- Net sales of $1.004 billion, up 4.4% as reported and up 3.7% organically*, year-over-year
- Orders of $971.5 million, down 6.3% as reported and down 6.9% organically*, year-over-year, primarily related to the prior year order pull-forward of $55 million to $60 million in the North America Contract segment
- Gross margin increased 20 basis points
- Consolidated operating expenses increased to $344.2 million
- Consolidated adjusted operating expenses* increased to $327.7 million, driven primarily by variable selling expense, new store costs, higher compensation expense and the timing of program spend
- Operating expense special charges of $16.5 million:
- $8.1 million of restructuring charges related to targeted workforce reductions and a facility consolidation
- $5.8 million of purchase accounting amortization
- $2.6 million of CEO transition costs
- Operating margin of 5.1%, compared to 5.7% in the prior year
- Adjusted operating margin* of 6.9%, compared to 7.5% in the prior year
Fiscal 2026
- Net sales of $3.842 billion, up 4.7% as reported and up 3.6% organically*, year-over-year
- Gross margin was flat with the prior year
- Operating margin of 5.2%, compared to 1.4% in the prior year
- Adjusted operating margin* of 6.2%, compared to 6.8% in the prior year
Fourth Quarter 2026 Cash Flow, Debt, and Liquidity
- Liquidity, as of May 30, 2026, of $571.7 million reflected cash on hand and Revolving Credit Facility availability
- Cash flow from operations of $64.9 million, compared to $70.9 million in Q4 last year
- Net debt-to-EBITDA ratio, as defined by our Credit Facility, of 2.80x
- Near term scheduled debt maturities:
- $25.1 million in fiscal 2027
- $25.8 million in fiscal 2028
- $76.2 million in fiscal 2029
Dividend
- On April 14, 2026, MillerKnoll’s Board of Directors declared a quarterly cash dividend of $0.1875 per share. The dividend is payable on July 15, 2026, to shareholders of record on May 30, 2026.
Fourth Quarter and Fiscal 2026 Results by Segment
North America Contract
- Q4 net sales of $530.2 million, up 6.9% as reported and up 6.7% organically*, year-over-year
- Q4 orders of $510.9 million, down 10.0% as reported and down 10.1% organically*, year-over-year
- Q4 operating margin of 8.2% compared to 7.7% in the prior year
- Q4 adjusted operating margin* of 10.4%, up 40 basis points compared to prior year, primarily from gross margin expansion driven by leverage on higher sales and pricing realization, partially offset by inflationary cost pressure
- Full year net sales of $2.061 billion, up 4.9% as reported and up 4.8% organically*
- Full year operating margin of 9.0%, up 280 basis points compared to prior year
- Full year adjusted operating margin* of 10.3%, up 60 basis points compared to prior year
International Contract
- Q4 net sales of $178.7 million, down 3.8% as reported and down 5.8% organically*, year-over-year
- Q4 orders of $173.0 million, down 8.7% as reported and down 10.6% organically*, year-over-year
- Q4 operating margin of 7.5% compared to 11.7% in the prior year
- Q4 adjusted operating margin* of 8.2%, down 470 basis points year-over-year, primarily from deleverage on lower sales, regional sales mix, foreign currency impact, and the timing of program spend
- Full year net sales of $674.0 million, up 2.1% as reported and down 1.2% organically*
- Full year operating margin of 8.1%, down 150 basis points compared to prior year
- Full year adjusted operating margin* of 8.6%, down 250 basis points compared to prior year
Global Retail
- Q4 net sales of $295.3 million, up 5.5% as reported and up 4.5% organically*, year-over-year
- Q4 orders of $287.6 million, up 2.8% as reported and up 2.0% organically*, year-over-year
- ◦ Q4 orders were up 8.8% in the North America region, year-over-year
- Q4 operating margin of 4.6% compared to 5.3% in the prior year
- Q4 adjusted operating margin* of 5.4%, down 110 basis points year-over-year, primarily due to the impact from opening new stores and underperformance by the Holly Hunt brand
- Full year net sales of $1,106.5 million, up 5.9% as reported and up 4.3% organically*
- Full year operating margin of 2.3%, up 860 basis points compared to prior year
- Full year adjusted operating margin* of 3.0%, down 200 basis points compared to prior year
- Q4 new retail store openings: DWR stores in Boulder, CO and Birmingham, MI, and Herman Miller stores in Ft. Lauderdale, FL and Woodbury, MN. Opened 15 total new retail stores in Fiscal 2026
First Quarter and Fiscal 2027 Outlook
The table below presents our selected expectations for the first quarter and full fiscal year 2027 financial operating results:
|
Q1 FY2027 |
|
|
Net sales |
$928 million to $968 million |
|
Gross margin % |
38.7% to 39.7% |
|
Adjusted operating expenses* |
$316 million to $326 million |
|
Interest and other expense, net |
$15 million to $16 million |
|
Adjusted effective tax rate* |
24% to 26% |
|
Adjusted earnings per share – diluted* |
$0.33 to $0.39 |
|
Full Year FY2027 |
|
|
Net sales |
$3.93 billion to $4.13 billion |
|
Adjusted earnings per share – diluted* |
$1.85 to $2.15 |
|
*Items indicated represent Non-GAAP measures. The Q1 FY2027 outlook excludes an expected $5.7 million in operating expense charges related to amortization of Knoll purchased intangibles and the related tax and earnings per share impact. The Company has not reconciled forward-looking non-GAAP measures because certain items that impact such measures are outside of the Company’s control and/or cannot be reasonably predicted. These items are uncertain, depend on various factors, and could have a material impact on GAAP results for the guidance period. See “Non-GAAP Financial Measures and Other Supplemental Data.” |
The full year outlook also includes the following additional estimated full year expectations:
- Opening 14 to 18 new retail stores, including three to four new store openings in Q1
- Effective tax rate of approximately 22.5% to 24.5%
- Capital expenditures of approximately $125 million to $135 million
The full text of MillerKnoll’s 4Q26 earnings release, including all tables, may be accessed at https://www.millerknoll.com/investor-relations.
A replay of the company’s June 24 conference call webcast may be accessed at https://www.millerknoll.com/investor-relations/news-events/events-and-presentations.
About MillerKnoll
MillerKnoll is a collective of dynamic brands that comes together to design the world we live in. MillerKnoll brand portfolio includes Herman Miller, Knoll, Colebrook Bosson Saunders, Design Within Reach, Edelman, Geiger, HAY, Holly Hunt, Knoll Textiles, Maharam, Muuto, NaughtOne, and Spinneybeck|FilzFelt. Guided by a shared purpose—design for the good of humankind—MillerKnoll generates insights, pioneers innovations, and champions ideas to better align spaces with how people live, work, and gather. For more information, visit millerknoll.com.