MillerKnoll, Inc. has reported a strong finish to fiscal year 2025, delivering an 8.2% year-over-year increase in net sales for the fourth quarter to $961.8 million, and an 11.1% jump in orders to $1.04 billion. The company's performance, bolstered by robust demand and strategic execution across segments, significantly exceeded internal expectations.
© MillerKnoll
'We are extremely proud of our results in the fourth quarter, significantly exceeding the expectations we set forth to the Street last quarter, and driven by outstanding, value-creating execution in all of our businesses and by our associates around the world,' said Andi Owen, President and Chief Executive Officer.
'As we look ahead, we are encouraged by the positive underlying trends and solid order growth we are seeing across our businesses and geographies. While macroeconomic conditions continue to be incredibly dynamic, we have the operational and balance sheet strength to both navigate these conditions and continue investing in our exciting growth opportunities ahead.'
Despite macroeconomic challenges, the North America Contract segment led the growth, posting a 12.5% increase in Q4 sales and a 15.8% increase in orders. The segment's operating margin climbed to 7.7% from flat the previous year, with adjusted margins hitting 10%.
The International Contract segment recorded a 6.9% increase in Q4 sales and a 3.6% rise in orders. Operating margin rose to 11.7%, while adjusted margins softened slightly to 12.9%, impacted by sales mix and incentive compensation.
Global Retail saw more modest growth, with Q4 sales up 2.2% and orders up 7.5%. However, adjusted operating margin declined to 6.5% due to international softness, product mix, and store-opening costs. Four new retail stores were opened in FY25, including Design Within Reach and Herman Miller locations in key U.S. markets.
Full-year net sales rose 1.1% to $3.7 billion. Operating margin stood at 1.4%, with adjusted margin at 6.8%. Cash flow from operations reached $70.9 million, and MillerKnoll reduced its outstanding debt by $4.8 million, ending the year with $575.9 million in liquidity. The company extended the maturity of its credit facilities to 2030 and maintained a net debt-to-EBITDA ratio of 2.88x.
The company continues to manage tariff-related pressures, with an estimated Q1 FY26 impact of $9–$11 million. Outlook also includes expenses tied to three new store openings next quarter.
MillerKnoll remains committed to sustainable, long-term growth through innovation and global brand strength.
More information:
MillerKnoll
www.news.millerknoll.com