MillerKnoll Reports 1.1% Increase in Net Sales to $3.67 Billion for Fiscal Year 2025

MillerKnoll, Inc. reported a modest increase in net sales for the fiscal year ending May 31, 2025, reaching $3.67 billion, a 1.1% rise from the previous year. This growth was primarily driven by increased sales volumes in the North America and International Contract segments, alongside positive pricing actions. However, the company faced challenges, including a strategic closure of the HAY eCommerce channel in North America and declines in the Global Retail segment, which contributed to a decrease in overall sales volume. The gross margin slightly decreased to 38.8% from 39.1% in the prior year, attributed to rising material costs and an unfavorable product mix, although this was partially offset by effective pricing strategies.

Operating expenses surged by 9.6% to $1.37 billion, largely due to a significant increase in non-cash intangible impairment charges, which rose by $113.2 million. The company reported a diluted loss per share of $0.54, a stark contrast to earnings of $1.11 per share in the previous fiscal year. On an adjusted basis, diluted earnings per share were $1.95, down from $2.08 in fiscal 2024. The effective tax rate for the year was notably negative at 53.1%, compared to 14.8% in the prior year, reflecting the impact of the company's financial performance and tax strategies.

MillerKnoll's operational structure includes three reportable segments: North America Contract, International Contract, and Global Retail. The North America Contract segment saw a 2.2% increase in net sales, while the International Contract segment also reported a 2.2% rise. In contrast, the Global Retail segment experienced a 1.5% decline in net sales. The company’s backlog of unfilled orders stood at $761.3 million as of May 31, 2025, up from $683.6 million the previous year, indicating a strong demand for its products moving forward.

Strategically, MillerKnoll has focused on enhancing its retail presence, particularly through the expansion of its Herman Miller and Design Within Reach brands. The company is also investing in product innovation and sustainability initiatives, aiming to capitalize on trends such as hybrid work environments and consumer interest in home furnishings. Looking ahead, MillerKnoll anticipates continued challenges from macroeconomic factors, including inflation and geopolitical uncertainties, but remains committed to prudent cost management and targeted growth opportunities across its segments.

As of the end of fiscal 2025, MillerKnoll employed approximately 10,382 individuals and maintained a strong liquidity position with $193.7 million in cash and cash equivalents. The company’s total long-term debt was reported at $1.31 billion, reflecting the financial implications of its acquisition of Knoll in July 2021. The management expressed confidence in the company’s ability to navigate the evolving market landscape while delivering value to shareholders and fostering a culture of engagement among its workforce.