MillerKnoll, Inc. Reports Second Quarter Fiscal 2026 Results

MillerKnoll Inc. (NASDAQ: MLKN), a growth-oriented small-cap value company in the industrial and consumer sectors, today reported results for the second quarter of fiscal year 2026, which ended November 29, 2025.

Second Quarter

• Net sales of $955.2 million, down 1.6% as reported and down 2.5% organically, year-over-year
• Orders of $972.5 million, up 5.5% as reported and up 4.5% organically, year-over-year, driven by growth in every segment
• Gross margin increased 20 basis points
• Consolidated operating expenses increased to $323.7 million
• Consolidated adjusted operating expenses increased to $316.3 million, driven primarily by higher compensation expense and higher costs related to new stores
• Operating expense special charges of $7.4 million:
  • $1.4 million of restructuring charges related to a facility consolidation
  • $6.0 million of purchase accounting amortization
• Operating margin of 5.1%, compared to 6.4% in the prior year
• Adjusted operating margin of 5.9%, compared to 7.1% in the prior year

Second Quarter 2026 Cash Flow, Debt, and Liquidity

• Liquidity, as of November 29, 2025, of $548.3 million reflected cash on hand and Revolving Credit Facility availability
• Cash flow from operations of $64.6 million, compared to $55.3 million in Q2 last year
• Net debt-to-EBITDA ratio, as defined by our Credit Facility, of 2.87x
• Near term scheduled debt maturities:
  • $10.3 million in fiscal 2026
  • $23.3 million in fiscal 2027
  • $25.8 million in fiscal 2028

“Our second quarter results reflect the disciplined execution of our strategic priorities and the strength of MillerKnoll’s brand collective. We delivered sales and earnings per share that exceeded expectations. Consolidated orders grew 5.5% with strength in every segment, including record performance from our Global Retail business during the Black Friday / Cyber Monday period. As industry trends continue to improve, we are well positioned to build on this momentum and drive long-term value for our customers and shareholders through ongoing innovation and operational excellence,” said Andi Owen, President and Chief Executive Officer.

Second Quarter Fiscal 2026 Results by Segment

North America Contract

• Q2 net sales of $508.5 million, down 3.1% both as reported and organically, year-over-year
  • Segment sales for the first half of the year were up 4.1%
• Q2 orders of $506.8 million, up 4.8% both as reported and organically, year-over-year
• Q2 operating margin of 8.7% compared to 9.4% in the prior year
• Q2 adjusted operating margin of 9.7%, down 50 basis points compared to prior year, primarily from deleverage on lower sales

International Contract 

• Q2 net sales of $170.9 million, down 6.3% as reported and down 9.2% organically, year-over-year
• Q2 orders of $162.0 million, up 6.6% as reported and up 3.4% organically, year-over-year
• Q2 operating margin of 9.3% compared to 12.2% in the prior year
• Q2 adjusted operating margin of 9.7%, down 280 basis points year-over-year, primarily from deleverage on lower sales and regional and product sales mix

Global Retail

• Q2 net sales of $275.8 million, up 4.7% as reported and up 3.4% organically, year-over-year
• Q2 orders of $303.7 million, up 6.0% as reported and up 4.5% organically, year-over-year
  • Q2 orders were up 8% in the North America region, year-over-year
  • During the twelve-day Black Friday holiday/cyber promotional period running from the Friday before Thanksgiving through Giving Tuesday orders were up 12%
• Q2 operating margin of 1.5% compared to 3.2% in the prior year
• Q2 adjusted operating margin of 2.1%, down 170 basis points year-over-year, primarily from new store costs, net tariff-related costs, and foreign currency impact
• Q2 new retail store openings: a DWR in Salt Lake City, UT, and three Herman Miller stores in Nashville, TN, El Segundo, CA, and Walnut Creek, CA

Third Quarter 2026 Outlook

The table below presents our expectations for the third quarter of fiscal 2026 financial operating results:

• Above guidance ranges include the following estimated impacts to incremental operating expense in Q3:
  • $5 million to $6 million in costs associated with new store investments expected in the second half of fiscal 2026, including two to three new store openings in Q3
  • Higher year-over-year variable selling and incentive expense
• Based on tariffs in place as of the date of this release, we expect incremental tariff costs in Q3 to be offset by previously announced pricing actions
• Our guidance takes into consideration the typical seasonal softness in our Contract businesses as the calendar year comes to a close and by the timing of the Chinese New Year holiday

The full text of MillerKnoll’s 2Q26 earnings release, including all tables, and a replay of the company’s Dec. 17 conference call and webcast, may be accessed at https://www.millerknoll.com/investor-relations.

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, DatesWeiser, Design Within Reach, Edelman, Geiger, HAY, Holly Hunt, Knoll Textiles, Maharam, Muuto, NaughtOne, and Spinneybeck|FilzFelt. MillerKnoll is an unparalleled platform that redefines modern for the 21^st century by building a more sustainable, equitable and beautiful future for all.