MillerKnoll, Inc. Reports Fourth Quarter and Full Year Fiscal Results

June 28, 2026  by Karen Parrish in Business Strategy, Industry   

"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.

First Quarter and Fiscal 2027 Outlook
The information below presents the 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

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

Webcast and Conference Call Information
The Company will host a conference call and webcast to discuss the results of the fourth quarter of fiscal 2026 on Wednesday, June 24, 2026, at 5:00 PM ET. 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.