#United States #MillerKnoll #Zeeland #North America Contract #Global Retail

MillerKnoll, Inc. Reports Third Quarter Fiscal 2025 Results

MillerKnoll, Inc. (NASDAQ: MLKN) has recently published its financial results for the third quarter of the fiscal year 2025, ending on March 1, 2025. The report indicated a slight increase in consolidated net sales by 0.4% year-over-year, amounting to $876.2 million. This growth was primarily fueled by the strength in the North America Contract and Global Retail segments.

Financial Highlights

Despite the challenges posed by varying economic conditions, MillerKnoll's diversified model has proven effective. The company has noted an impressive growth in Global Retail orders by nearly 15%, continuing a successful trend in North America. During this quarter, the firm restructured its reporting segments to align more closely with long-term goals, categorizing them into North America Contract, International Contract, and Global Retail.

Third Quarter Performance Overview

This quarter marked a strategic transition for MillerKnoll as the reporting segments, effective March 1, 2025, are rescoped to highlight performance across these segments. Consolidated net sales rose to $876.2 million, representing a 0.4% increase, while gross margins decreased slightly to 37.9% from the previous year’s 38.6% due to unfavorable product mixes and higher commodity costs.

Operating expenses saw a significant increase of 40.9% compared to the prior year, totaling $414.6 million. The heightened expenses were attributed to several factors, including a $140.2 million special charge, which included costs from restructuring and impairments. Consequently, the diluted share loss for the quarter was reported at $0.19, a shift from diluted earnings of $0.30 during the same period last year.

Segment Breakdown

North America Contract

North America Contract generated net sales of $468.2 million, showing a moderate increase of 1.4% year-over-year. However, new orders fell by 1.8%, indicating cautious demand in several regions while sustaining overall sales growth.

International Contract

In contrast, the International Contract saw a decline in sales to $145.5 million, down 5.0% from the previous year, with a slight uptick in orders by 1.4%. Growth was particularly noticeable in certain regions such as the Middle East and India.

Global Retail

Conversely, the Global Retail segment achieved significant success with net sales reaching $262.5 million, marking a 1.9% year-over-year increase along with a new order surge hitting 14.7% compared to the previous year. The overall demand in North America continued to thrive, buoyed by customer enthusiasm for new product offerings.

Outlook Moving Forward

Given the turbulent economic landscape marked by supply chain disruptions and tariff uncertainties, MillerKnoll's outlook for the remainder of the fiscal year remains cautiously optimistic. Anticipated net sales for the fourth quarter are projected between $910 million and $950 million, with adjusted earnings expected between $0.46 and $0.52 per diluted share.

Corporate leadership, including President Andi Owen, remains committed to maintaining a growth trajectory by innovating product offerings and adapting to market demands. In light of recent organizational changes, the focus includes improving clarity on performance metrics while amplifying investment in growth opportunities.

MillerKnoll's proactive strategies and emphasis on customer engagement demonstrate resilience, navigating through challenging market fluctuations effectively. The collective strengths of its diversified offerings position the company well for future challenges and opportunities ahead.