MillerKnoll Reports Third Quarter Fiscal Results

March 30, 2026  by Karen Parrish in Business Strategy, Industry   

Third Quarter

- Net sales of $926.6 million, up 5.8% as reported and up 3.8% organically^*, year-over-year

- Orders of $931.6 million, up 9.2% as reported and up 7.2% organically^*, year-over-year, driven by growth in North America Contract and Global Retail segments

- Gross margin increased 20 basis points

- Consolidated operating expenses decreased to $308.0 million

- Consolidated adjusted operating expenses^* increased to $300.0 million, driven primarily by higher compensation expense, new store costs, and unfavorable currency

- Operating expense special charges of $8.0 million:

- $1.9 million of restructuring charges related to a facility consolidation

- $6.1 million of purchase accounting amortization

- Operating margin of 4.8%, compared to a negative operating margin of 9.4% in the prior year

- Adjusted operating margin^* of 5.7%, compared to 6.6% in the prior year

Third Quarter 2026 Cash Flow, Debt, and Liquidity

- Liquidity, as of February 28, 2026, of $594.0 million reflected cash on hand and Revolving Credit Facility availability

- Cash flow from operations of $61.1 million, compared to $62.1 million in Q3 last year

- Net debt-to-EBITDA ratio, as defined by our Credit Facility, of 2.75x

- Near term scheduled debt maturities:

- $5.8 million in fiscal 2026

- $23.3 million in fiscal 2027

- $25.8 million in fiscal 2028

Dividend
On January 13, 2026, MillerKnoll's Board of Directors declared a quarterly cash dividend of $0.1875 per share. The dividend is payable on April 15, 2026, to shareholders of record on February 28, 2026.

"We delivered solid fiscal 2026 third quarter results, with sales growth across all three segments and strong order growth led by North America Contract and Global Retail. These results underscore the strength and resilience of our diversified portfolio.

"Despite ongoing macroeconomic and geopolitical uncertainty, as well as weather-related impacts during the quarter, our team remained focused on disciplined execution and operational priorities within our control.

"We remain well positioned to drive profitable growth and create long-term value across our collective of brands through sustained revenue growth, margin expansion, cash generation and shareholder returns," said Andi Owen, President and Chief Executive Officer. 

Fourth Quarter 2026 Outlook

- Above guidance ranges include the following estimated impacts to incremental operating expense in Q4:

- Approximately $8 million to $9 million in currently anticipated direct impact of the Middle East conflict from minimal expected shipments to the region and higher logistics costs, or $0.09 to $0.10 per share- $3.5 million to $4.5 million in costs associated with new store investments, including three to four new store openings in Q4

- Based on tariffs in place as of the date of this release, we expect incremental tariff costs in Q4 to be offset by previously announced pricing actions

- Our guidance includes an estimated full year capital expenditure range of $120 million to $130 million

- Our guidance does not assume additional headwinds from changes in the geopolitical environment, including the conflict in the Middle East, beyond the items described

Webcast and Conference Call Information
To ensure participation, allow extra time to visit the Company's website at https://www.millerknoll.com/investor-relations/news-events/events-and-presentations to download the streaming software necessary to participate. An online archive of the webcast will also be available on the Company's investor relations website. Additional links to materials supporting the release will be available at https://www.millerknoll.com/investor-relations.