MillerKnoll, Inc. Q3 FY2026 earnings call

Andi Owen thanked associates, congratulated operations team on 30th anniversary of MKPS. Discussed macro environment including tariffs and Middle East impact. Highlighted North America Contract's cash generation, order growth, and upcoming Design Day. Mentioned International Contract's product portfolio advantage and regional dynamics. Global Retail saw comp sales growth, store expansions, brand campaigns. Kevin Veltman discussed financial results, cash flows, balance sheet, and Q4 guidance.

North America Contract: Net sales $489 million, up 4.4% reported and 4.1% organic; orders $491 million, up 13.1% reported and 12.8% organic; operating margin 8.6%, adjusted operating margin 9.8%. International Contract: Net sales $157 million, up 7.8% reported and 1.9% organic; orders $160 million, up 0.7% reported and down 4.3% organic; reported operating margin 7.7%, adjusted operating margin 8.2%. Global Retail: Net sales $281 million, up 7.1% reported and 4.4% organic; orders $280 million, up 7.9% reported and 5.1% organic; operating margin 2.2%, adjusted margin 2.8%.

Q4 net sales expected $955M - $995M, midpoint $975M; gross margin 37.5% - 38.5%; adjusted operating expense $311.5M - $321.5M; adjusted diluted earnings $0.49 - $0.55 per share, with Middle East conflict impact $8M - $9M or $0.09 - $0.10 per share. Anticipate 3 - 4 more stores in Q4, total 14 - 15 in fiscal year.

Macroeconomic and geopolitical uncertainty, Middle East conflict impact on sales and costs, adverse weather impact on Retail, potential elevated costs from oil prices, plastics, foam, etc., price sensitivity in some regions outside US.

Q: Clarify weather impact on business.

A: Lower traffic, store closures in Retail; slowdown in showroom visits in Contract.

Q: Oil market volatility impact.

A: Monitor component costs for Contract, resilient consumer in Retail.

Q: Partial shutdown impact on government spend.

A: Federal government business choppy but still activity.

Q: Middle East earnings drag.

A: $12M orders not shipped, logistics-related costs.

Q: Store openings next year.

A: Similar pace, incremental cost similar.

Q: Retail product assortment and gross margin.

A: Adding to lifestyle, gaming portfolios; gross margin impacted by freight true-up, shipping costs, FX, variable incentives.