MillerKnoll, Inc. kicked off fiscal 2026 with a robust first quarter, reporting net sales of $955.7 million, up 10.9% compared to the same period last year, and adjusted earnings per share of $0.45, a 25% increase from Q1 FY2025.
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The company attributed this growth to strong execution across its North America and International Contract segments, alongside targeted strategic initiatives. Operating earnings improved significantly to $53.5 million (5.6% margin), compared to $15.2 million (1.8% margin) in the prior year, while adjusted operating earnings rose to $60.1 million (6.3% margin), up from 5.8% a year earlier.
The North America Contract segment led the way, with net sales of $533.9 million, up 12.1% year-over-year. Orders declined slightly due to a pull-forward effect from the previous quarter, but operating margins improved dramatically to 10.7%, reflecting higher net sales and efficient cost management. The International Contract segment also saw growth, with net sales of $167.5 million, up 14.4% on a reported basis, though adjusted operating margin saw a modest decline due to product and regional sales mix.
In the Global Retail segment, net sales reached $254.3 million, up 6.4% year-over-year, driven by new store openings, including two DWR locations in Sarasota, FL and Las Vegas, NV, and two Herman Miller stores in Chicago, IL, and Philadelphia, PA. Adjusted operating margin, however, declined to 1.2%, impacted by higher freight costs, tariffs, and expenses associated with new retail expansions.
MillerKnoll's liquidity remains strong at $480.5 million, and the company completed a $550 million refinancing of Term Loan B, extending its maturity to 2032. Cash flow from operations was $9.4 million, with a net debt-to-EBITDA ratio of 2.92x.
Looking ahead, MillerKnoll expects Q2 FY2026 net sales between $926 million and $966 million, adjusted operating expenses of $300–310 million, and adjusted EPS of $0.38 to $0.44. The outlook accounts for anticipated tariff-related costs and operating expenses from four new retail store openings.
Andi Owen, President and CEO, commented, "Our strong start to fiscal 2026 demonstrates the resilience of our business model, the strength of our team, and the ongoing opportunities across our portfolio of brands. We remain focused on executing our strategic initiatives and driving growth in both Contract and Retail markets globally."
MillerKnoll continues to leverage its portfolio of iconic and contemporary brands, including Herman Miller, Knoll, HAY, Muuto, and Design Within Reach, to deliver sustainable, design-driven solutions for residential, commercial, and institutional spaces worldwide.
More information:
Miller Knoll
www.millerknoll.com
