MillerKnoll Reports 5.8% Revenue Growth and Net Earnings Recovery in Q3 Fiscal 2026

MillerKnoll, Inc. reported a significant increase in financial performance for the third quarter of fiscal 2026, with net sales reaching $926.6 million, a 5.8% increase from $876.2 million in the same period last year. The company's gross margin improved to 38.1%, up from 37.9% in the prior year, primarily due to favorable leverage on fixed costs and an improved product mix. Operating expenses decreased by 25.7% to $308.0 million, largely due to the absence of non-cash impairment charges that impacted the previous year’s results. The company recorded net earnings of $23.5 million, compared to a loss of $12.7 million in the prior year, resulting in earnings per share of $0.34, a substantial recovery from a loss of $0.19.

In the nine months ending February 28, 2026, MillerKnoll's net sales totaled $2.84 billion, reflecting a 4.8% increase from $2.71 billion in the same period last year. The company attributed this growth to price increases, favorable foreign currency translation, and increased sales volumes across its segments. The North America Contract segment saw net sales of $1.53 billion, a 4.2% increase, while the Global Retail segment reported $811.2 million, up 6.1%. The International Contract segment also experienced growth, with sales of $495.3 million, a 4.4% increase.

Strategically, MillerKnoll has focused on expanding its retail footprint and enhancing operational efficiencies. The company has implemented a restructuring plan aimed at creating operational efficiencies, which has included workforce reductions and facility consolidations. As of February 28, 2026, the company reported a backlog of $711.6 million, indicating strong future demand. The total employee headcount has remained stable, reflecting the company's focus on optimizing its workforce in line with its strategic goals.

Operationally, MillerKnoll has seen an increase in customer engagement, with orders totaling $931.6 million for the quarter, a 9.2% increase year-over-year. The company has also expanded its geographic reach, with international sales contributing significantly to overall growth. The company’s liquidity position remains strong, with cash and cash equivalents of $174.6 million and available borrowings under its revolving credit facility totaling $419.4 million as of the end of the quarter.

Looking ahead, MillerKnoll anticipates continued growth driven by its strategic initiatives and market demand. The company expects to maintain its focus on enhancing product offerings and expanding its market presence while managing costs effectively. The outlook remains positive, with management expressing confidence in the company's ability to navigate market challenges and capitalize on opportunities for growth in the coming quarters.