MillerKnoll Inc.

09/28/2026 | Press release | Distributed by Public on 09/28/2026 14:06

Quarterly Report for Quarter Ending August 29, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
(Dollars in millions, except share data)
The following is management's discussion and analysis of certain significant factors that affected the Company's financial condition, earnings, and cash flows during the periods included in the accompanying Condensed Consolidated Financial Statements and should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended May 30, 2026. References to "Notes" are to the footnotes included in the accompanying Condensed Consolidated Financial Statements.
Business Overview and Quarterly Highlights
The Company researches, designs, manufactures, sells, and distributes interior furnishings for use in various environments including residential, office, healthcare, and educational settings and provides related services that support organizations and individuals all over the world. The Company's products are sold primarily through independent contract office furniture dealers, direct customer sales, owned and independent retailers and the Company's eCommerce platforms.
The following is a summary of results for the three months ended August 29, 2026:
•Net sales were $923.4 million and orders were $913.9 million, representing a decrease of 3.4% and an increase of 3.2%, respectively, when compared to the same quarter of the prior year. On an organic* basis, which excludes the impact of foreign currency translation, net sales were $924.5 million and orders were $916.2 million, representing an organic* decrease of 3.3% and an organic* increase of 3.5%, respectively, when compared to the same quarter of the prior year.
•Gross margin in the first quarter was 41.7%, an increase of 320 basis points when compared to the same quarter of the prior year, related primarily to incremental pricing and the favorable impact of refunds totaling $16.5 million from tariffs previously imposed by the U.S. government under the International Emergency Economic Powers Act ("IEEPA").
•Operating expenses increased $18.9 million or 6.0% as compared to the same quarter of the prior year. The increase was driven primarily by higher fixed and variable compensation costs, increased restructuring charges associated with facility consolidation and workforce reduction initiatives, and incremental costs related to new store openings. These increases were partially offset by savings generated through cost management initiatives implemented across the business.
•The effective tax rate was 21.5% compared to 26.5% for the same quarter of the prior year. The change compared to the prior year relates primarily to favorable impacts from lower non-deductible officers' compensation, higher export tax incentives, and an increase in foreign tax credits.
•Diluted earnings per share in the quarter was $0.38 compared to $0.29 in the prior year. Adjusted diluted earnings per share* was $0.53, a 17.8% increase compared to the prior year quarter, which includes the $0.11 impact of net IEEPA tariff refunds.
(*) Non-GAAP measurements; see accompanying reconciliations and explanations under the heading "Reconciliation of Non-GAAP Financial Measures."
A comparison of net sales and orders during the first quarter compared to the prior year period by segment is as follows:
•The North America Contract segment reported first quarter net sales of $505.6 million, representing a decrease of 5.3% on a reported basis and 5.2% on an organic* basis compared to the prior year period. Orders totaled $483.7 million, a decrease of 1.7% on a reported basis and 1.6% on an organic* basis.
•The International Contract segment reported net sales in the first quarter of $156.8 million, representing a decrease of 6.4% on a reported basis and 6.2% on an organic* basis compared to the prior year period. Orders totaled $181.2 million, an increase of 17.3% on a reported basis and 17.9% on an organic* basis.
•The Global Retail segment reported first quarter net sales of $261.0 million, representing an increase of 2.6% on a reported basis and 2.8% on an organic* basis compared to the prior year period. Orders totaled $249.0 million, an increase of 4.3% on a reported basis and 4.7% on an organic* basis.
(*) Non-GAAP measurements; see accompanying reconciliations and explanations under the heading "Reconciliation of Non-GAAP Financial Measures."
The Company's fiscal year is the 52 or 53 week period ending on the Saturday closest to May 31. The fiscal year ending May 29, 2027 ("fiscal 2027") and the fiscal year ended May 30, 2026 ("fiscal 2026") both contain 52 weeks.
The remaining sections within Item 2 include additional analysis of the three months ended August 29, 2026, including discussion of significant variances compared to the prior year periods.
The following table presents certain quarterly highlights from the results of operations for the three months ended:
Three Months Ended
(In millions, except share data)
August 29, 2026 August 30, 2025 % Change
Net sales $ 923.4 $ 955.7 (3.4) %
Cost of sales 538.1 587.6 (8.4) %
Gross margin 385.3 368.1 4.7 %
Operating expenses 333.5 314.6 6.0 %
Operating earnings 51.8 53.5 (3.2) %
Other expenses, net 16.6 24.8 (33.1) %
Earnings before income taxes 35.2 28.7 22.6 %
Income tax expense 7.6 7.6 - %
Net earnings 27.6 21.1 30.8 %
Net earnings attributable to redeemable noncontrolling interests 1.0 0.9 11.1 %
Net earnings attributable to MillerKnoll, Inc. $ 26.6 $ 20.2 31.7 %
Earnings per share - basic $ 0.38 $ 0.29 31.0 %
Earnings per share - diluted
$ 0.38 $ 0.29 31.0 %
Orders $ 913.9 $ 885.4 3.2 %
Backlog $ 669.2 $ 690.9 (3.1) %
The following table presents select components of the Company's Condensed Consolidated Statements of Comprehensive Income as a percentage of Net sales, for the three months ended:
Three Months Ended
August 29, 2026
August 30, 2025
Net sales
100.0
%
100.0
%
Cost of sales
58.3
%
61.5
%
Gross margin
41.7
%
38.5
%
Operating expenses
36.1
%
32.9
%
Operating earnings
5.6
%
5.6
%
Other expenses, net
1.8
%
2.6
%
Earnings before income taxes
3.8
%
3.0
%
Income tax expense
0.8
%
0.8
%
Net earnings
3.0
%
2.2
%
Net earnings attributable to redeemable noncontrolling interests
0.1
%
0.1
%
Net earnings attributable to MillerKnoll, Inc.
2.9
%
2.1
%
Reconciliation of Non-GAAP Financial Measures
This report contains non-GAAP financial measures that are not in accordance with, nor an alternative to, generally accepted accounting principles (GAAP) and may be different from non-GAAP measures presented by other companies. These non-GAAP financial measures are not measurements of our financial performance under GAAP and should not be considered an alternative to the related GAAP measurement. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. The Company's presentation of non-GAAP measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. The Company compensates for these limitations by providing equal prominence of our GAAP results. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included within this report. The Company believes these non-GAAP measures are useful for investors as they provide financial information on a more comparative basis for the periods presented.
The non-GAAP financial measures referenced within this report include: Adjusted Earnings per Share - Diluted and Organic Growth (Decline).
Adjusted Earnings per Share - Diluted represents reported diluted earnings per share excluding the impact from amortization of Knoll purchased intangibles, restructuring charges, debt extinguishment charges, CEO transition costs and the related tax effect of these adjustments. These adjustments are described further below.
Organic Growth (Decline) represents the change in sales and orders, excluding currency translation effects.
The adjustments made to arrive at these non-GAAP financial measures are as follows. We exclude these items from our non-GAAP measures because they are not reflective of our ongoing financial performance:
•Amortization of Knoll purchased intangibles: Includes expenses associated with the amortization of acquisition related intangibles acquired as part of the Knoll acquisition. The revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. We exclude the impact of the amortization of Knoll purchased intangibles as such non-cash amounts were significantly impacted by the size of the Knoll acquisition. Furthermore, we believe that this adjustment enables better comparison of our results as Amortization of Knoll Purchased Intangibles will not recur in future periods once such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Although we exclude the Amortization of Knoll Purchased Intangibles in these non-GAAP measures, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
•Restructuring charges: Includes costs associated with actions involving targeted workforce reductions, facility consolidations, and accelerated depreciation of fixed assets.
•Debt extinguishment charges: Includes expenses associated with the extinguishment of debt.
•CEO transition costs: Includes one-time expenses consisting primarily of severance, benefits and advisory fees.
•Tax related items: Includes the income tax benefit/provision effect of the tax-related items from our non-GAAP measures because they are not associated with the tax expense on our ongoing operating results.
The following tables reconcile net sales, as reported to net sales, organic for the periods ended as indicated below:
Three Months Ended
August 29, 2026
North America Contract International Contract Global Retail Total
Net sales, as reported $ 505.6 $ 156.8 $ 261.0 $ 923.4
% change from PY (5.3) % (6.4) % 2.6 % (3.4) %
Adjustments
Currency translation effects (1)
0.3 0.3 0.5 1.1
Net sales, organic $ 505.9 $ 157.1 $ 261.5 $ 924.5
Organic (Decline) Growth (5.2) % (6.2) % 2.8 % (3.3) %
Three Months Ended
August 30, 2025
North America Contract International Contract Global Retail Total
Net sales, as reported $ 533.9 $ 167.5 $ 254.3 $ 955.7
(1) Currency translation effects represent the estimated net impact of translating current period sales using the average exchange rates applicable to the comparable prior year period.
The following tables reconcile orders, as reported to orders, organic for the periods ended as indicated below:
Three Months Ended
August 29, 2026
North America Contract International Contract Global Retail Total
Orders, as reported $ 483.7 $ 181.2 $ 249.0 $ 913.9
% change from PY (1.7) % 17.3 % 4.3 % 3.2 %
Adjustments
Currency translation effects (1)
0.4 1.0 0.9 2.3
Orders, organic $ 484.1 $ 182.2 $ 249.9 $ 916.2
Organic (Decline) Growth (1.6) % 17.9 % 4.7 % 3.5 %
Three Months Ended
August 30, 2025
North America Contract International Contract Global Retail Total
Orders, as reported $ 492.2 $ 154.5 $ 238.7 $ 885.4
(1) Currency translation effects represent the estimated net impact of translating current period orders using the average exchange rates applicable to the comparable prior year period.
The following table reconciles earnings per share - diluted to adjusted earnings per share - diluted for the periods ended as indicated below:
Three Months Ended
August 29, 2026 August 30, 2025
Earnings per share - diluted $ 0.38 $ 0.29
Add: Amortization of Knoll purchased intangibles 0.08 0.09
Add: Restructuring charges 0.10 0.01
Add: Debt extinguishment charges - 0.11
CEO transition costs 0.02 -
Tax impact on adjustments (0.05) (0.05)
Adjusted earnings per share - diluted $ 0.53 $ 0.45
Weighted average shares outstanding (used for calculating adjusted earnings per share) - diluted 70,040,606 69,194,506
Net Sales
The following chart presents graphically the primary drivers of the year-over-year change in net sales for the three months ended August 29, 2026. The amounts presented in the graph are expressed in millions and have been rounded.
Net sales decreased $32.3 million, or 3.4%, in the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. The decrease was primarily driven by lower sales volumes in the North America Contract and International Contract segments, which reduced net sales by approximately $48 million and $7 million, respectively, as well as unfavorable foreign currency translation of $1 million. These decreases were partially offset by the favorable impact of price realization, net of discounting, which contributed approximately $23 million to net sales.
Gross Margin
Gross margin increased to 41.7% in the first quarter of fiscal 2027 from 38.5% in the first quarter of fiscal 2026. The year-over-year increase was primarily driven by:
•Favorable pricing, reflecting the impact of incremental list price increases, partially offset by contract price discounting.
•The favorable impact of refunds received from the U.S. government related to previously incurred IEEPA tariffs, which contributed approximately $16.5 million to gross margin.
These favorable impacts were partially offset by inflationary cost pressures and unfavorable leverage of fixed manufacturing costs resulting from lower sales volumes.
Operating Expenses
The following chart presents graphically the primary drivers of the year-over-year change in operating expenses for the three months ended August 29, 2026. The amounts presented in the graphs are expressed in millions and have been rounded.
Operating expenses increased $18.9 million, or 6.0%, in the first quarter of fiscal 2027 compared to the prior year period. The increase was primarily driven by approximately $13 million of higher fixed and variable compensation costs, approximately $6 million of restructuring charges associated with facility consolidation and workforce reduction initiatives, and approximately $5 million of incremental costs related to new store openings. These increases were partially offset by savings generated through cost management initiatives implemented across the business.
Other Income/Expense
Net other expense decreased $8.2 million to $16.6 million for the three months ended August 29, 2026, primarily due to the absence of the $7.8 million loss on extinguishment of debt incurred in the prior-year period in connection with the refinancing of term loan debt, as well as lower interest expense of $2.2 million. These benefits were partially offset by higher foreign currency losses.
Income Taxes
See Note 9 of the Condensed Consolidated Financial Statements for additional information.
Operating Segment Results
The Company has three reportable segments: North America Contract, International Contract and Global Retail. The Company's operating segments are determined based on the manner in which management organizes the business for making operating decisions and assessing performance. A description of each reportable segment is below.
The North America Contract segment includes the operations associated with the design, sourcing, manufacture, and sale of furniture products directly or indirectly through an independent dealership network for office, healthcare, and educational environments throughout the United States and Canada, as well as the global operations of the Spinneybeck, FilzFelt, Maharam, Edelman, and Knoll Textile brands.
The International Contract segment includes the operations associated with the design, sourcing, manufacture, and sale of furniture products directly or indirectly through an independent dealership network in Europe, the Middle East, Africa, Asia-Pacific and Latin America.
The Global Retail segment includes global operations associated with the sale of modern design furnishings and accessories to third party retailers, as well as direct to consumer sales through eCommerce, direct-mail catalogs, and physical retail stores, along with the global operations of the Holly Hunt brand.
The Company also reports a "Corporate" category consisting primarily of unallocated expenses related to general corporate functions, including, but not limited to, certain legal, executive, corporate finance, information technology, administrative and acquisition-related costs. For descriptions of each segment, refer to Note 14 of the Condensed Consolidated Financial Statements.
The charts below present the relative mix of net sales and operating earnings across each of the Company's segments during the three month period ended August 29, 2026. This is followed by a discussion of the Company's results, by reportable segment. The amounts presented in the charts are in millions and have been rounded.
North America Contract
Three Months Ended
(Dollars in millions)
August 29, 2026
August 30, 2025
Change
Net sales
$
505.6
$
533.9
$
(28.3)
Operating earnings
47.5
56.9
(9.4)
Operating earnings %
9.4
%
10.7
%
(1.3)
%
For the three month comparative period, net sales decreased 5.3%, or 5.2% on an organic* basis, compared to the prior year period, primarily due to:
•Decreased sales volumes within the segment, which negatively impacted net sales by approximately $48 million.
•Favorable price realization, reflecting the impact of price increases, net of discounting, which positively impacted net sales by approximately $20 million.
For the three month comparative period, operating earnings decreased $9.4 million, or 16.5%, compared to the prior year period. The decrease was driven by higher operating expenses, which more than offset an increase in gross margin.
Gross margin increased by $0.8 million, and gross margin percentage increased 220 basis points. The increase in gross margin percentage was primarily driven by:
•The favorable impact of refunds received from the U.S. government related to previously incurred IEEPA tariffs, which contributed approximately $4.6 million to gross margin.
•Favorable pricing, reflecting the impact of incremental list price increases, partially offset by contract price discounting.
These favorable impacts were partially offset by inflationary cost pressures and unfavorable leverage of fixed manufacturing costs resulting from lower sales volumes.
Operating expenses increased by $10.2 million compared to the prior year period. The increase was primarily driven by:
•Higher fixed and variable compensation costs.
•Higher restructuring charges associated with facility consolidation initiatives
These increases were partially offset by savings generated through cost management initiatives implemented across the segment.
International Contract
Three Months Ended
(Dollars in millions)
August 29, 2026
August 30, 2025
Change
Net sales
$
156.8
$
167.5
$
(10.7)
Operating earnings
3.7
13.5
(9.8)
Operating earnings %
2.4
%
8.1
%
(5.7)
%
For the three month comparative period, net sales decreased 6.4%, or 6.2% on an organic* basis, compared to the prior year period, primarily due to:
•Decreased sales volumes within the segment, which unfavorably impacted net sales by approximately $7 million.
•Incremental discounting, net of price increases, which unfavorably impacted net sales by approximately $4 million.
For the three month comparative period, operating earnings decreased $9.8 million or 72.6%, compared to the prior year period. This decrease was driven by higher operating expenses, which more than offset an increase in gross margin percentage.
Gross margin decreased by $2.2 million, while gross margin percentage increased 110 basis points. The increase in gross margin percentage was primarily driven by favorable regional and product sales mix. This was partially offset by unfavorable leverage of fixed manufacturing costs resulting from lower sales volumes.
Operating expenses increased by $7.6 million compared to the prior year period. The increase was primarily driven by:
•Higher fixed and variable compensation costs.
•Higher restructuring charges associated with facility consolidation initiatives.
•Increased showroom investments and the timing of marketing and sales events.
Global Retail
Three Months Ended
(Dollars in millions)
August 29, 2026
August 30, 2025
Change
Net sales
$
261.0
$
254.3
$
6.7
Operating earnings
16.0
1.4
14.6
Operating earnings %
6.1
%
0.6
%
5.5
%
For the three month comparative period, net sales increased 2.6%, or 2.8% on an organic* basis, compared to the prior year period, primarily due to:
•Favorable price realization, reflecting the impact of price increases, net of discounting, which positively impacted net sales by approximately $7 million.
•Unfavorable foreign currency translation, which decreased net sales by approximately $1 million.
For the three month comparative period, operating earnings increased $14.6 million or 1,042.9% compared to the prior year period. The increase was driven by higher gross margin percentage.
Gross margin increased by $18.6 million, and gross margin percentage increased 600 basis points. The increase in gross margin and gross margin percentage was primarily driven by:
•The favorable impact of refunds received from the U.S. government related to previously incurred IEEPA tariffs, which contributed approximately $11.8 million to gross margin.
•Favorable pricing, reflecting the impact of incremental list price increases, partially offset by discounting.
Operating expenses increased by $4.0 million compared to the prior year period. The increase was primarily driven by:
•Incremental costs related to new store openings
•Higher fixed and variable compensation costs.
•These increases were partially offset by savings generated through cost management initiatives implemented across the business.
Corporate
Corporate unallocated expenses were $15.4 million in the first quarter of fiscal 2027, a decrease of $2.9 million compared to the first quarter of fiscal 2026. The decrease was primarily attributable to lower long-term incentive compensation and reduced health care costs.
Liquidity and Capital Resources
The table below summarizes the net change in Cash and cash equivalents for the three months ended as indicated.
(In millions)
August 29, 2026
August 30, 2025
Cash provided by (used in):
Operating activities
$
49.1
$
9.4
Investing activities
(32.1)
(30.5)
Financing activities
(4.8)
(9.2)
Effect of exchange rate changes
(1.3)
3.8
Net change in Cash and cash equivalents
$
10.9
$
(26.5)
Cash Flows - Operating Activities
Cash provided by operating activities for the three months ended August 29, 2026 was $49.1 million, compared to $9.4 million in the prior year period. The increase was primarily driven by higher net earnings and a lower use of cash for working capital.
Working capital used $22.4 million of cash during the current year period, compared to $63.0 million in the prior year period. The improvement in working capital was primarily attributable to a lower use of cash related to current liabilities, driven primarily by accrued variable compensation, and other accrued liabilities, as well as improved collections of trade receivables. These favorable impacts were partially offset by higher inventory levels.
Cash Flows - Investing Activities
Cash used in investing activities for the three months ended August 29, 2026, was $32.1 million, compared to $30.5 million in the prior-year period. The slight increase in cash used in investing activities was primarily attributable to higher capital expenditures during the current-year period.
At the end of the first quarter of fiscal 2027, there were outstanding commitments for capital purchases of $26.5 million. The Company plans to fund these commitments through a combination of cash on hand and cash flows from operations. The Company expects full-year capital purchases to be between $125.0 million and $135.0 million which will be primarily related to investments in the Company's facilities, (including manufacturing, showrooms, and retail stores) and equipment. This compares to full-year capital spending of $122.3 million in fiscal 2026. Capital expenditures for the first three months of fiscal 2027 were $32.5 million compared to $30.7 million for the three months ended August 30, 2025.
Cash Flows - Financing Activities
Cash used in financing activities for the three months ended August 29, 2026, was $4.8 million, compared to $9.2 million in the same period of the prior year. The decrease in cash used in the current year, compared to the prior year, was primarily attributable to:
•The absence of significant refinancing-related cash outflows incurred in the prior-year period. During the current period, the Company made scheduled principal payments of $3.9 million on its term loan debt, compared to net cash outflows of $58.7 million in the prior year period related to scheduled principal payments and the refinancing of Term Loan B.
•Net proceeds of $13.6 million received under the Company's accounts receivable securitization facility during the current period.
These decreases were partially offset by:
•Lower net borrowings under the Company's revolving credit facility, which totaled $2.3 million during the current period, compared to net borrowings of $68.9 million during the prior year period.
•Higher share repurchases and related tax withholding payments, which totaled $9.5 million during the current period, compared to $7.2 million during the prior year period.
Sources of Liquidity
The Company closely manages spending levels, capital investments, and working capital. The Company maintains an open market share repurchase program under our existing share repurchase authorization and may repurchase shares from time to time based on management's evaluation of market conditions, share price and other factors.
At the end of the first quarter of fiscal 2027, the Company had a well-positioned balance sheet and liquidity profile. The Company has access to liquidity through credit facilities as well as cash and cash equivalents. These sources have been summarized below. For additional information, refer to Note 12 to the Condensed Consolidated Financial Statements.
(In millions)
August 29, 2026
May 30, 2026
Cash and cash equivalents
$
178.6
$
167.7
Availability under syndicated revolving line of credit
401.8
404.0
Total liquidity
$
580.4
$
571.7
Of the Cash and cash equivalents noted above at the end of the first quarter of fiscal 2027, the Company had $169.3 million of Cash and cash equivalents held outside the United States.
The Company's syndicated revolving line of credit, which matures in April 2030, provides the Company with up to $725 million in revolving variable interest borrowing capacity and allows the Company to borrow incremental amounts, at its option, subject to negotiated terms as outlined in the agreement. Outstanding borrowings bear interest at rates based on the prime rate, federal funds rate, SOFR or negotiated terms as outlined in the agreement.
As of August 29, 2026, the total debt outstanding related to borrowings under the syndicated revolving line of credit was $311.5 million with available borrowings on this facility of $401.8 million.
The Company intends to repatriate $119.9 million of undistributed foreign earnings, all of which is held in cash in certain foreign jurisdictions. The Company has recorded a $1.4 million deferred tax liability related to foreign withholding taxes on these future dividends received in the U.S. from foreign subsidiaries. A significant portion of the $119.9 million of undistributed foreign earnings was previously taxed under the U.S. Tax Cut and Jobs Act (TCJA). The Company intends to remain indefinitely reinvested in the remaining undistributed earnings outside the U.S. which is estimated to be approximately $377.8 million on August 29, 2026.
The Company believes cash on hand, cash generated from operations, and borrowing capacity will provide adequate liquidity to fund near term and foreseeable future business operations, capital needs, upcoming debt maturities, future dividends and share repurchases, subject to financing availability in the marketplace.
Contractual Obligations
Contractual obligations associated with ongoing business and financing activities will require cash payments in future periods. A table summarizing the amounts and estimated timing of these future cash payments as of May 30, 2026, was provided in the Company's Annual Report on Form 10-K for the year ended May 30, 2026. There have been no material changes in such obligations since that date.
Guarantees
See Note 11 to the Condensed Consolidated Financial Statements.
Variable Interest Entities
See Note 16 to the Condensed Consolidated Financial Statements.
Contingencies
See Note 11 to the Condensed Consolidated Financial Statements.
Critical Accounting Policies
The Company strives to report financial results clearly and understandably. The Company follows accounting principles generally accepted in the United States in preparing its consolidated financial statements, which require certain estimates and judgments that affect the financial position and results of operations for the Company. The Company continually reviews the accounting policies and financial information disclosures. A summary of the more significant accounting policies that require the use of estimates and judgments in preparing the financial statements is provided in the Company's Annual Report on Form 10-K for the year ended May 30, 2026.
New Accounting Standards
See Note 2 to the Condensed Consolidated Financial Statements.
Cautionary Note Regarding Forward-Looking Statements
This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include those relating to future events, anticipated results of operations, our expectations regarding future market conditions, our business strategies, our assessment of risks we face, and other aspects of our operations or operating results. These forward-looking statements generally can be identified by phrases such as "will," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on our results of operations or financial condition or the price of our stock. These forward-looking statements involve certain risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including, but not limited to:
•The effects of the ongoing conflict in the Middle East and broader geopolitical instability, including with respect to negative impacts on our supply chain, decreased sales within the region or beyond due to supply chain constraints or other factors, energy prices, and broader inflationary and macroeconomic effects;
•Changes to U.S. and international trade policies, including new or increased tariffs, developments relating to tariff refunds (including the risk of clawback or reversal or tariff refunds or the discontinuation of any additional tariff refunds), and changing import/export regulations, which impact both the cost and availability of materials and components used to manufacture our products as well as demand for our products;
•Challenges in implementing our growth strategy and the possibility that the assumptions on which that strategy was built prove inaccurate;
•Consumer spending levels, which have a significant impact on demand for our products within our Global Retail segment;
•Global and national economic conditions such as heightened inflation, uncertainty regarding future interest rates, foreign currency exchange rate fluctuations, geopolitical instability, and potential governmental responses to these events;
•Transition in the Company's executive leadership, which may result in changes to our strategy or operations;
•Cybersecurity threats and risks;
•Public health crises, such as pandemics and epidemics, and governmental policies and actions to protect the health and safety of individuals or to maintain the functioning of national or global economies;
•Risks related to the additional debt incurred in connection with our acquisition of Knoll, including increased interest expense, our ability to comply with our debt covenants and obligations, and limitations on certain business activities imposed by our credit agreement;
•Availability and pricing of raw materials;
•Financial strength of our dealers and customers;
•Pace and level of government procurement; and
•Outcome of pending litigation or governmental audits or investigations.
For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to MillerKnoll's periodic reports and other filings with the SEC, including the risk factors identified in our most recent Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for the year ended May 30, 2026. The forward-looking statements included in this report are made only as of the date hereof. MillerKnoll does not undertake any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.
MillerKnoll Inc. published this content on September 28, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on September 28, 2026 at 20:07 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]