MillerKnoll, Inc. Reports Third Quarter Fiscal 2025 Results
MillerKnoll (NASDAQ: MLKN) reported Q3 FY2025 results with consolidated net sales of $876.2 million, up 0.4% year-over-year. The company saw mixed performance across segments, with Global Retail orders up 15% while contract businesses remained sluggish.
Key financial metrics include:
- Gross margin of 37.9%, down 70 basis points
- Operating loss margin of 9.4% vs 4.9% income last year
- Adjusted diluted EPS of $0.44 vs $0.45 prior year
- Special charges of $140.2 million, including $130.0 million in goodwill impairment
Segment performance varied with North America Contract sales up 1.4%, International Contract down 5.0%, and Global Retail up 1.9%. The company maintained strong liquidity of $468.2 million and generated $62.1 million in operating cash flow, while reducing long-term debt by $60.7 million.
MillerKnoll (NASDAQ: MLKN) ha riportato i risultati del terzo trimestre dell'anno fiscale 2025 con vendite nette consolidate di 876,2 milioni di dollari, in aumento dello 0,4% rispetto all'anno precedente. L'azienda ha registrato performance miste tra i vari segmenti, con gli ordini Global Retail in aumento del 15%, mentre le attività nel settore contrattuale sono rimaste fiacche.
I principali indicatori finanziari includono:
- Margine lordo del 37,9%, in calo di 70 punti base
- Margine di perdita operativa del 9,4% rispetto a un utile del 4,9% dell'anno scorso
- EPS diluito rettificato di 0,44 dollari rispetto a 0,45 dollari dell'anno precedente
- Accantonamenti speciali di 140,2 milioni di dollari, inclusi 130,0 milioni di dollari per svalutazione dell'avviamento
Le performance dei segmenti sono variate con le vendite nel settore contrattuale del Nord America in aumento dell'1,4%, quelle internazionali in calo del 5,0% e il Global Retail in aumento dell'1,9%. L'azienda ha mantenuto una solida liquidità di 468,2 milioni di dollari e ha generato 62,1 milioni di dollari di flusso di cassa operativo, riducendo il debito a lungo termine di 60,7 milioni di dollari.
MillerKnoll (NASDAQ: MLKN) informó los resultados del tercer trimestre del año fiscal 2025 con ventas netas consolidadas de 876,2 millones de dólares, un aumento del 0,4% en comparación con el año anterior. La compañía vio un desempeño mixto en los segmentos, con órdenes de Global Retail en aumento del 15%, mientras que los negocios de contratos permanecieron lentos.
Los principales indicadores financieros incluyen:
- Margen bruto del 37,9%, una disminución de 70 puntos básicos
- Margen de pérdida operativa del 9,4% frente a un ingreso del 4,9% del año pasado
- EPS diluido ajustado de 0,44 dólares frente a 0,45 dólares del año anterior
- Cargos especiales de 140,2 millones de dólares, incluidos 130,0 millones de dólares por deterioro de la plusvalía
El desempeño por segmentos varió, con ventas de contratos en América del Norte en aumento del 1,4%, contratos internacionales en disminución del 5,0% y Global Retail en aumento del 1,9%. La compañía mantuvo una sólida liquidez de 468,2 millones de dólares y generó 62,1 millones de dólares en flujo de caja operativo, mientras reducía la deuda a largo plazo en 60,7 millones de dólares.
MillerKnoll (NASDAQ: MLKN)는 2025 회계연도 3분기 실적을 보고하며, 총 매출이 8억 7620만 달러로 전년 대비 0.4% 증가했다고 발표했습니다. 회사는 다양한 부문에서 혼합된 성과를 보였으며, 글로벌 소매 주문이 15% 증가한 반면 계약 비즈니스는 여전히 부진했습니다.
주요 재무 지표는 다음과 같습니다:
- 총 마진 37.9%, 70bp 감소
- 운영 손실 마진 9.4% 대 작년 4.9%의 수익
- 조정된 희석 EPS 0.44달러 대 작년 0.45달러
- 특별 비용 1억 4020만 달러, 이 중 1억 3000만 달러는 영업권 손상에 대한 것입니다
부문별 성과는 북미 계약 매출이 1.4% 증가하고, 국제 계약이 5.0% 감소하며, 글로벌 소매가 1.9% 증가하는 등 다양했습니다. 회사는 4억 6820만 달러의 강력한 유동성을 유지했고, 6210만 달러의 운영 현금 흐름을 창출했으며, 장기 부채를 6070만 달러 줄였습니다.
MillerKnoll (NASDAQ: MLKN) a annoncé les résultats du troisième trimestre de l'exercice 2025 avec des ventes nettes consolidées de 876,2 millions de dollars, en hausse de 0,4 % par rapport à l'année précédente. L'entreprise a connu des performances variées selon les segments, avec les commandes de Global Retail en hausse de 15%, tandis que les activités contractuelles sont restées stagnantes.
Les principaux indicateurs financiers comprennent :
- Marge brute de 37,9 %, en baisse de 70 points de base
- Marge de perte opérationnelle de 9,4 % contre un bénéfice de 4,9 % l'année précédente
- BPA dilué ajusté de 0,44 $ contre 0,45 $ l'année précédente
- Charges spéciales de 140,2 millions de dollars, dont 130,0 millions de dollars pour amortissement du goodwill
La performance des segments a varié avec des ventes de contrats en Amérique du Nord en hausse de 1,4 %, des contrats internationaux en baisse de 5,0 % et le Global Retail en hausse de 1,9 %. L'entreprise a maintenu une solide liquidité de 468,2 millions de dollars et a généré 62,1 millions de dollars de flux de trésorerie opérationnel, tout en réduisant sa dette à long terme de 60,7 millions de dollars.
MillerKnoll (NASDAQ: MLKN) hat die Ergebnisse des dritten Quartals des Geschäftsjahres 2025 veröffentlicht, mit konsolidierten Nettoumsätzen von 876,2 Millionen Dollar, was einem Anstieg von 0,4% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete gemischte Ergebnisse in den Segmenten, wobei Global Retail-Bestellungen um 15% stiegen, während das Vertragsgeschäft weiterhin schwach blieb.
Wichtige Finanzkennzahlen sind:
- Bruttomarge von 37,9%, ein Rückgang um 70 Basispunkte
- Betriebsverlustmarge von 9,4% gegenüber einem Gewinn von 4,9% im Vorjahr
- Bereinigtes verwässertes EPS von 0,44 Dollar gegenüber 0,45 Dollar im Vorjahr
- Sonderaufwendungen von 140,2 Millionen Dollar, darunter 130,0 Millionen Dollar für die Wertminderung von Geschäfts- oder Firmenwerten
Die Segmentleistung variierte, wobei die Vertragsverkäufe in Nordamerika um 1,4% stiegen, internationale Verträge um 5,0% zurückgingen und Global Retail um 1,9% zunahm. Das Unternehmen hielt eine starke Liquidität von 468,2 Millionen Dollar und erwirtschaftete 62,1 Millionen Dollar an operativem Cashflow, während es die langfristigen Schulden um 60,7 Millionen Dollar reduzierte.
- Strong Global Retail order growth of 15% year-over-year
- Generated $62.1 million in operating cash flow
- Reduced long-term debt by $60.7 million
- North America Contract sales increased 1.4%
- Operating loss margin of 9.4% compared to 4.9% income last year
- $140.2 million in special charges, including $130.0 million goodwill impairment
- Gross margin declined 70 basis points to 37.9%
- International Contract segment sales declined 5.0%
Insights
MillerKnoll's Q3 FY2025 results highlight the value of their diversified business model but reveal significant challenges. The company posted a modest 0.4% year-over-year sales increase to
The substantial
Despite these challenges, MillerKnoll demonstrated financial discipline by reducing long-term debt by
Financial Highlights
- Consolidated net sales in the third quarter were up
0.4% year-over-year, driven by North America Contract and Global Retail. - Strong order growth in Global Retail led by impressive performance in
North America . - New reporting segment structure aligns with long-term strategies.
Third Quarter Fiscal 2025 Financial Results
(Unaudited) | (Unaudited) | |||||
Three Months Ended | Nine Months Ended | |||||
(Dollars in millions, except per share data) | March 1, | March 2, | % Chg. | March 1, | March 2, | % Chg. |
(13 weeks) | (13 weeks) | (13 weeks) | (13 weeks) | |||
Net sales | $ 876.2 | $ 872.3 | 0.4 % | $ 2,708.1 | $ 2,739.5 | (1.1) % |
Gross margin % | 37.9 % | 38.6 % | N/A | 38.6 % | 39.0 % | N/A |
Operating expenses | $ 414.6 | $ 294.2 | 40.9 % | $ 1,050.2 | $ 923.6 | 13.7 % |
Adjusted operating expenses* | $ 274.4 | $ 278.9 | (1.6) % | $ 869.4 | $ 878.5 | (1.0) % |
Effective tax rate | 88.3 % | 16.0 % | N/A | 139.5 % | 20.5 % | N/A |
Adjusted effective tax rate* | 22.0 % | 20.3 % | N/A | 22.0 % | 22.7 % | N/A |
Earnings (loss) per share - diluted | $ (0.19) | $ 0.30 | (163.3) % | $ 0.29 | $ 0.97 | (70.1) % |
Adjusted earnings per share - diluted* | $ 0.44 | $ 0.45 | (2.2) % | $ 1.33 | $ 1.41 | (5.7) % |
*Items indicated represent Non-GAAP measurements; see the reconciliations of Non-GAAP financial measures and related explanations below. |
To our shareholders:
Our results in the third quarter of fiscal 2025 reflect the advantage of our diversified business model, with strong performance in certain markets and channels mitigating softness in others, along with a disciplined focus on our cost structure amidst very dynamic macroeconomic conditions.
During the quarter we saw a notable difference in demand in our retail businesses compared to most of our contract businesses. Leading indicators within our contract businesses are mixed, and overall demand in most geographies was sluggish during the quarter amid uncertainty related to tariff policy and other macroeconomic factors.
At the same time, we are buoyed by the strong demand in our Global Retail business where reported orders were up nearly
Our earnings in the quarter met our expectations despite these challenges. Given the near-term economic uncertainty around tariffs and global supply chain, we took proactive steps to improve our near-term profitability. Our teams have done a great job balancing costs across the Company while preserving our investments in growth.
We announced today changes in our organizational structure and reporting segments to improve visibility into our performance in key end markets and better align with our long-term growth strategies.
Third Quarter Fiscal 2025 Consolidated Results
Effective March 1, 2025, we changed our reporting segments in accordance with changes in our organizational structure. The reportable segments now consist of three segments: North America Contract, International Contract, and Global Retail. Details concerning the makeup of the new segments and three years of recast financials can be found in our Form 8-K filed today.
Consolidated net sales for the third quarter were
Gross margin in the quarter was
Consolidated operating expenses for the quarter were
During the third quarter, the Company recorded special charges of
Operating loss margin for the quarter was
Reported diluted loss per share was
As of March 1, 2025, our liquidity position reflected cash on hand and availability on our revolving credit facility totaling
During the third quarter, we reduced our long-term debt by
Third Quarter Fiscal 2025 Results by Segment
North America Contract
For the third quarter, North America Contract net sales of
Operating margin in the quarter was
International Contract
International Contract segment net sales in the third quarter of
Operating margin for the third quarter was
Global Retail
In the third quarter, our Global Retail segment net sales were
Operating loss margin in the quarter was
We are very pleased with the strength of this business and continue to be encouraged by customer enthusiasm for our new product launches, targeted promotions, growing brand awareness and new retail locations.
Fourth Quarter and Fiscal 2025 Outlook
The table below presents our expectations for fourth quarter and selected full year fiscal 2025 financial operating results:
Q4 FY2025 | Full Year FY2025 | |
Net sales | ||
Gross margin % | ||
Adjusted operating expenses* | ||
Interest and other expense, net | ||
Adjusted effective tax rate* | ||
Adjusted earnings per share - diluted* | ||
*Items indicated represent Non-GAAP measures. The Q4 FY2025 outlook excludes an expected |
Included in the above guidance ranges are estimated incremental costs related to tariffs (net of expected mitigation efforts) on our fourth quarter results. We expect these costs to range between
Andi Owen | Jeff Stutz | ||
President and Chief Executive Officer | Chief Financial Officer |
Webcast and Conference Call Information
The Company will host a conference call and webcast to discuss the results of the third quarter of fiscal 2025 on Wednesday, March 26, 2025, at 5:00 PM ET. To ensure participation, allow extra time to visit the Company's website at https://www.millerknoll.com/investor-relations/news-events/events-and-presentations to download the streaming software necessary to participate. An online archive of the webcast will also be available on the Company's investor relations website. Additional links to materials supporting the release will be available at https://www.millerknoll.com/investor-relations.
Financial highlights for the three and nine months ended March 1, 2025 follow:
MillerKnoll, Inc. | |||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(Unaudited) (Dollars in millions, except per | Three Months Ended | Nine Months Ended | |||||||||
March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | ||||||||
Net sales | $ 876.2 | 100.0 % | $ 872.3 | 100.0 % | $ 2,708.1 | 100.0 % | $ 2,739.5 | 100.0 % | |||
Cost of sales | 543.8 | 62.1 % | 535.3 | 61.4 % | 1,662.4 | 61.4 % | 1,672.4 | 61.0 % | |||
Gross margin | 332.4 | 37.9 % | 337.0 | 38.6 % | 1,045.7 | 38.6 % | 1,067.1 | 39.0 % | |||
Operating expenses | 414.6 | 47.3 % | 294.2 | 33.7 % | 1,050.2 | 38.8 % | 923.6 | 33.7 % | |||
Operating (loss) earnings | (82.2) | (9.4) % | 42.8 | 4.9 % | (4.5) | (0.2) % | 143.5 | 5.2 % | |||
Other expenses, net | 18.6 | 2.1 % | 15.3 | 1.8 % | 53.1 | 2.0 % | 50.6 | 1.8 % | |||
(Loss) earnings before income taxes and equity | (100.8) | (11.5) % | 27.5 | 3.2 % | (57.6) | (2.1) % | 92.9 | 3.4 % | |||
Income tax (benefit) expense | (89.0) | (10.2) % | 4.4 | 0.5 % | (80.3) | (3.0) % | 19.0 | 0.7 % | |||
Equity income, net of tax | 0.1 | — % | — | — % | 0.3 | — % | (0.3) | — % | |||
Net (loss) earnings | (11.7) | (1.3) % | 23.1 | 2.6 % | 23.0 | 0.8 % | 73.6 | 2.7 % | |||
Net earnings attributable to redeemable | 1.0 | 0.1 % | 0.9 | 0.1 % | 2.8 | 0.1 % | 1.2 | — % | |||
Net (loss) earnings attributable to MillerKnoll, | $ (12.7) | (1.4) % | $ 22.2 | 2.5 % | $ 20.2 | 0.7 % | $ 72.4 | 2.6 % | |||
Amounts per common share attributable to MillerKnoll, Inc. | |||||||||||
(Loss) earnings per share - basic | ( | ||||||||||
Weighted average basic common shares | 68,353,906 | 72,720,734 | 69,269,956 | 73,952,015 | |||||||
(Loss) earnings per share - diluted | ( | ||||||||||
Weighted average diluted common shares | 68,353,906 | 74,146,826 | 70,181,279 | 74,616,391 |
MillerKnoll, Inc. | |||
Condensed Consolidated Statements of Cash Flows | |||
Nine Months Ended | |||
(Unaudited) (Dollars in millions) | March 1, 2025 | March 2, 2024 | |
Cash provided by (used in): | |||
Operating activities | $ 138.4 | $ 273.9 | |
Investing activities | (60.3) | (61.0) | |
Financing activities | (127.6) | (213.1) | |
Effect of exchange rate changes | (11.1) | 0.3 | |
Net change in cash and cash equivalents | (60.6) | 0.1 | |
Cash and cash equivalents, beginning of period | 230.4 | 223.5 | |
Cash and cash equivalents, end of period | $ 169.8 | $ 223.6 |
MillerKnoll, Inc. | |||
Condensed Consolidated Balance Sheets | |||
(Unaudited) (Dollars in millions) | March 1, 2025 | June 1, 2024 | |
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 169.8 | $ 230.4 | |
Accounts receivable, net | 321.7 | 308.3 | |
Unbilled accounts receivable | 24.3 | 22.2 | |
Inventories, net | 425.5 | 428.6 | |
Prepaid expenses and other | 199.3 | 80.1 | |
Total current assets | 1,140.6 | 1,069.6 | |
Net property and equipment | 475.2 | 492.0 | |
Right of use assets | 389.9 | 375.6 | |
Other assets | 1,889.7 | 2,106.4 | |
Total Assets | $ 3,895.4 | $ 4,043.6 | |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & | |||
Current Liabilities: | |||
Accounts payable | $ 238.1 | $ 241.4 | |
Short-term borrowings and current portion of long-term debt | 48.4 | 43.5 | |
Short-term lease liability | 71.4 | 67.2 | |
Accrued liabilities | 325.2 | 345.6 | |
Total current liabilities | 683.1 | 697.7 | |
Long-term debt | 1,283.3 | 1,291.7 | |
Lease liabilities | 390.9 | 360.4 | |
Other liabilities | 215.6 | 234.8 | |
Total Liabilities | 2,572.9 | 2,584.6 | |
Redeemable Noncontrolling Interests | 68.4 | 73.9 | |
Stockholders' Equity | 1,254.1 | 1,385.1 | |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' | $ 3,895.4 | $ 4,043.6 |
Non-GAAP Financial Measures and Other Supplemental Data
This presentation contains non-GAAP financial measures that are not in accordance with, nor an alternative to, generally accepted accounting principles (GAAP) and may be different from non-GAAP measures presented by other companies. These non-GAAP financial measures are not measurements of our financial performance under GAAP and should not be considered an alternative to the related GAAP measurement. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of non-GAAP measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence of our GAAP results. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included within this presentation. The Company believes these non-GAAP measures are useful for investors as they provide financial information on a more comparative basis for the periods presented.
The non-GAAP financial measures referenced within this presentation may include: Adjusted Effective Tax Rate, Adjusted Operating Earnings (Loss), Adjusted Operating Margin, Adjusted Earnings per Share, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Bank Covenant EBITDA, and Organic Growth (Decline).
Adjusted Effective Tax Rate refers to the projected full-year GAAP tax rate, adjusted to exclude certain unusual or infrequent events that are expected to significantly impact that rate as well as impacts related to enactments of comprehensive tax law changes.
Adjusted Operating Earnings (Loss) represents reported operating earnings plus integration charges, amortization of Knoll purchased intangibles, restructuring expenses, impairment charges, and Knoll pension plan termination charges. These adjustments are described further below.
Adjusted Operating Margin is calculated as adjusted operating earnings (loss) divided by net sales.
Adjusted Earnings per Share represents reported diluted earnings per share excluding the impact from amortization of Knoll purchased intangibles, integration charges, restructuring expenses, impairment charges, Knoll pension plan termination charges and the related tax effect of these adjustments. These adjustments are described further below.
Adjusted Gross Margin represents gross margin plus integration charges. These adjustments are described further below.
Adjusted Operating Expenses represents reported operating expenses excluding restructuring charges, integration charges, amortization of Knoll purchased intangibles, impairment charges, and Knoll pension plan termination charges. These adjustments are described further below.
Adjusted Bank Covenant EBITDA is calculated by excluding depreciation, amortization, interest expense, taxes from net income, and certain other adjustments. Other adjustments include, as applicable in the period, charges associated with business restructuring actions, integration charges, impairment expenses, non-cash stock-based compensation, future synergies, and other items as described in our lending agreements.
Organic Growth (Decline) represents the change in sales and orders, excluding currency translation effects and the impact of the closure of the North America HAY eCommerce channel in the Global Retail segment.
Global Retail Third Quarter Fiscal 2025 Cyber Adjusted Orders represents year over year order growth in the quarter after adjusting organic growth by the additional impact of
The adjustments to arrive at these non-GAAP financial measures are as follows:
Amortization of Knoll purchased intangibles: Includes expenses associated with the amortization of acquisition related intangibles acquired as part of the Knoll acquisition. The revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. We exclude the impact of the amortization of Knoll purchased intangibles as such non-cash amounts were significantly impacted by the size of the Knoll acquisition. Furthermore, we believe that this adjustment enables better comparison of our results as Amortization of Knoll Purchased Intangibles will not recur in future periods once such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Although we exclude the Amortization of Knoll Purchased Intangibles in these non-GAAP measures, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
Integration charges: Knoll integration-related costs include severance, asset impairment charges associated with lease and operations facility consolidation activity, and expenses related to synergy realization efforts and reorganization initiatives.
Restructuring charges: Includes costs associated with actions involving targeted workforce reductions.
Impairment charges: Includes non-cash, pre-tax charges for the impairment of the Knoll and Muuto trade names as well as impairment of goodwill attributed to the Global Retail and Holly Hunt reporting units.
Knoll pension plan termination charges: Includes expenses incurred associated with the termination of the Knoll pension plan which was completed in the second quarter of fiscal year 2025.
Tax related items: We excluded the income tax benefit/provision effect of the tax related items from our non-GAAP measures because they are not associated with the tax expense on our ongoing operating results.
Certain tables below summarize select financial information, for the periods indicated, related to each of the Company's reportable segments. The North America Contract segment includes the operations associated with the design, manufacture and sale of furniture products directly or indirectly through an independent dealership network for office, healthcare, and educational environments throughout
A. Reconciliation of Operating Earnings (Loss) to Adjusted Operating Earnings (Loss) by Segment | ||||||||
Three Months Ended | Nine Months Ended | |||||||
March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||
North America Contract | ||||||||
Net sales | $ 468.2 | 100.0 % | $ 461.7 | 100.0 % | $ 1,469.1 | 100.0 % | $ 1,481.2 | 100.0 % |
Gross margin | 161.0 | 34.4 % | 163.0 | 35.3 % | 522.6 | 35.6 % | 539.6 | 36.4 % |
Total operating expenses | 144.0 | 30.8 % | 137.5 | 29.8 % | 440.0 | 30.0 % | 433.1 | 29.2 % |
Operating earnings | $ 17.0 | 3.6 % | $ 25.5 | 5.5 % | $ 82.6 | 5.6 % | $ 106.5 | 7.2 % |
Adjustments | ||||||||
Restructuring charges | 2.4 | 0.5 % | 1.5 | 0.3 % | 2.4 | 0.2 % | 6.1 | 0.4 % |
Integration charges | — | — % | 7.6 | 1.6 % | 24.8 | 1.7 % | 18.1 | 1.2 % |
Impairment charges | 19.9 | 4.3 % | — | — % | 19.9 | 1.4 % | — | — % |
Amortization of Knoll purchased intangibles | 3.5 | 0.7 % | 3.7 | 0.8 % | 10.6 | 0.7 % | 10.9 | 0.7 % |
Knoll pension plan termination charges | — | — % | — | — % | 1.0 | 0.1 % | — | — % |
Adjusted operating earnings | $ 42.8 | 9.1 % | $ 38.3 | 8.3 % | $ 141.3 | 9.6 % | $ 141.6 | 9.6 % |
International Contract | ||||||||
Net sales | $ 145.5 | 100.0 % | $ 153.1 | 100.0 % | $ 474.3 | 100.0 % | $ 471.9 | 100.0 % |
Gross margin | 52.2 | 35.9 % | 57.1 | 37.3 % | 172.6 | 36.4 % | 167.7 | 35.5 % |
Total operating expenses | 42.3 | 29.1 % | 39.6 | 25.9 % | 131.0 | 27.6 % | 125.0 | 26.5 % |
Operating earnings | $ 9.9 | 6.8 % | $ 17.5 | 11.4 % | $ 41.6 | 8.8 % | $ 42.7 | 9.0 % |
Adjustments | ||||||||
Restructuring charges | 1.7 | 1.2 % | 0.1 | 0.1 % | 1.7 | 0.4 % | 1.3 | 0.3 % |
Integration charges | — | — % | — | — % | 3.2 | 0.7 % | 0.2 | — % |
Impairment charges | 1.2 | 0.8 % | — | — % | 1.2 | 0.3 % | — | — % |
Amortization of Knoll purchased intangibles | 0.7 | 0.5 % | 0.6 | 0.4 % | 1.9 | 0.4 % | 1.8 | 0.4 % |
Adjusted operating earnings | $ 13.5 | 9.3 % | $ 18.2 | 11.9 % | $ 49.6 | 10.5 % | $ 46.0 | 9.7 % |
Global Retail | ||||||||
Net sales | $ 262.5 | 100.0 % | $ 257.5 | 100.0 % | $ 764.7 | 100.0 % | $ 786.4 | 100.0 % |
Gross margin | 119.2 | 45.4 % | 116.9 | 45.4 % | 350.5 | 45.8 % | 359.8 | 45.8 % |
Total operating expenses | 213.6 | 81.4 % | 104.8 | 40.7 % | 431.3 | 56.4 % | 325.3 | 41.4 % |
Operating (loss) earnings | $ (94.4) | (36.0) % | $ 12.1 | 4.7 % | $ (80.8) | (10.6) % | $ 34.5 | 4.4 % |
Adjustments | ||||||||
Restructuring charges | 0.1 | — % | 0.1 | — % | 0.1 | — % | 1.3 | 0.2 % |
Integration charges | — | — % | — | — % | 0.3 | — % | — | — % |
Impairment charges | 108.9 | 41.5 % | — | — % | 108.9 | 14.2 % | — | — % |
Amortization of Knoll purchased intangibles | 1.8 | 0.7 % | 1.7 | 0.7 % | 5.3 | 0.7 % | 5.3 | 0.7 % |
Adjusted operating earnings | $ 16.4 | 6.2 % | $ 13.9 | 5.4 % | $ 33.8 | 4.4 % | $ 41.1 | 5.2 % |
Corporate | ||||||||
Operating expenses | $ 14.7 | — % | $ 12.3 | — % | $ 47.9 | — % | $ 40.2 | — % |
Operating (loss) | $ (14.7) | — % | $ (12.3) | — % | $ (47.9) | — % | $ (40.2) | — % |
Adjustments | ||||||||
Integration charges | — | — % | — | — % | — | — % | 0.1 | — % |
Adjusted operating (loss) | $ (14.7) | — % | $ (12.3) | — % | $ (47.9) | — % | $ (40.1) | — % |
MillerKnoll, Inc. | ||||||||
Net sales | $ 876.2 | 100.0 % | $ 872.3 | 100.0 % | $ 2,708.1 | 100.0 % | $ 2,739.5 | 100.0 % |
Gross margin | 332.4 | 37.9 % | 337.0 | 38.6 % | 1,045.7 | 38.6 % | 1,067.1 | 39.0 % |
Total operating expenses | 414.6 | 47.3 % | 294.2 | 33.7 % | 1,050.2 | 38.8 % | 923.6 | 33.7 % |
Operating (loss) earnings | $ (82.2) | (9.4) % | $ 42.8 | 4.9 % | $ (4.5) | (0.2) % | $ 143.5 | 5.2 % |
Adjustments | ||||||||
Restructuring charges | 4.2 | 0.5 % | 1.7 | 0.2 % | 4.2 | 0.2 % | 8.7 | 0.3 % |
Integration charges | — | — % | 7.6 | 0.9 % | 28.3 | 1.0 % | 18.4 | 0.7 % |
Impairment charges | 130.0 | 14.8 % | — | — % | 130.0 | 4.8 % | — | — % |
Amortization of Knoll purchased intangibles | 6.0 | 0.7 % | 6.0 | 0.7 % | 17.8 | 0.7 % | 18.0 | 0.7 % |
Knoll pension plan termination charges | — | — % | — | — % | 1.0 | — % | — | — % |
Adjusted operating earnings | $ 58.0 | 6.6 % | $ 58.1 | 6.7 % | $ 176.8 | 6.5 % | $ 188.6 | 6.9 % |
B. Reconciliation of (Loss) Earnings per Share to Adjusted Earnings per Share | ||||
Three Months Ended | Nine Months Ended | |||
March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |
(Loss) earnings per share - diluted | $ (0.19) | $ 0.30 | $ 0.29 | $ 0.97 |
Add: Amortization of Knoll purchased intangibles | 0.09 | 0.08 | 0.25 | 0.24 |
Add: Integration charges | — | 0.10 | 0.40 | 0.26 |
Add: Restructuring charges | 0.06 | 0.02 | 0.06 | 0.10 |
Add: Impairment charges | 1.91 | — | 1.85 | — |
Add: Knoll pension plan termination charges | — | — | 0.01 | — |
Tax impact on adjustments | (1.43) | (0.05) | (1.53) | (0.16) |
Adjusted earnings per share - diluted | $ 0.44 | $ 0.45 | $ 1.33 | $ 1.41 |
Weighted average shares outstanding (used for | 68,353,906 | 74,146,826 | 70,181,279 | 74,616,391 |
C. Reconciliation of Gross Margin to Adjusted Gross Margin | ||||||||
Three Months Ended | Nine Months Ended | |||||||
March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||
Gross margin | $ 332.4 | 37.9 % | $ 337.0 | 38.6 % | $ 1,045.7 | 38.6 % | $ 1,067.1 | 39.0 % |
Integration charges | — | — % | — | — % | 0.5 | — % | — | — % |
Adjusted gross margin | $ 332.4 | 37.9 % | $ 337.0 | 38.6 % | $ 1,046.2 | 38.6 % | $ 1,067.1 | 39.0 % |
D. Reconciliation of Operating Expenses to Adjusted Operating Expenses | ||||||||
Three Months Ended | Nine Months Ended | |||||||
March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |||||
Operating expenses | $ 414.6 | 47.3 % | $ 294.2 | 33.7 % | $ 1,050.2 | 38.8 % | $ 923.6 | 33.7 % |
Restructuring charges | 4.2 | 0.5 % | 1.7 | 0.2 % | 4.2 | 0.2 % | 8.7 | 0.3 % |
Integration charges | — | — % | 7.6 | 0.9 % | 27.8 | 1.0 % | 18.4 | 0.7 % |
Amortization of Knoll purchased intangibles | 6.0 | 0.7 % | 6.0 | 0.7 % | 17.8 | 0.7 % | 18.0 | 0.7 % |
Knoll pension plan termination charges | — | — % | — | — % | 1.0 | — % | — | — % |
Impairment charges | 130.0 | 14.8 % | — | — % | 130.0 | 4.8 % | — | — % |
Adjusted operating expenses | $ 274.4 | 31.3 % | $ 278.9 | 32.0 % | $ 869.4 | 32.1 % | $ 878.5 | 32.1 % |
E. Reconciliation of Net Earnings to Adjusted Bank Covenant EBITDA and Adjusted Bank Covenant EBITDA Ratio (provided | |
March 1, 2025 | |
Net earnings | $ 30.1 |
Income tax expense | (84.6) |
Depreciation expense | 110.7 |
Amortization expense | 37.5 |
Interest expense | 78.2 |
Other adjustments(*) | 227.4 |
Adjusted bank covenant EBITDA | $ 399.3 |
Total debt, less cash, end of trailing period | $ 1,170.8 |
Net debt to adjusted bank covenant EBITDA ratio | 2.93 |
*Items indicated represent Non-GAAP measurements; see the reconciliations of Non-GAAP financial measures and |
F. Organic Sales Growth by Segment | ||||
Three Months Ended | ||||
March 1, 2025 | ||||
| International | Global Retail | Total | |
Net sales, as reported | $ 468.2 | $ 145.5 | $ 262.5 | $ 876.2 |
% change from PY | 1.4 % | (5.0) % | 1.9 % | 0.4 % |
Adjustments | ||||
Currency translation effects (1) | 1.2 | 5.3 | 3.1 | 9.6 |
Net sales, organic | $ 469.4 | $ 150.8 | $ 265.6 | $ 885.8 |
% change from PY | 1.7 % | (1.5) % | 3.9 % | 1.8 % |
Three Months Ended | ||||
March 2, 2024 | ||||
| International | Global Retail | Total | |
Net sales, as reported | $ 461.7 | $ 153.1 | $ 257.5 | $ 872.3 |
Adjustments | ||||
HAY eCommerce | — | — | (1.8) | (1.8) |
Net sales, organic | $ 461.7 | $ 153.1 | $ 255.7 | $ 870.5 |
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to | ||||
Nine Months Ended | ||||
March 1, 2025 | ||||
| International | Global Retail | Total | |
Net sales, as reported | $ 1,469.1 | $ 474.3 | $ 764.7 | $ 2,708.1 |
% change from PY | (0.8) % | 0.5 % | (2.8) % | (1.1) % |
Adjustments | ||||
Currency translation effects (1) | 1.8 | 5.5 | 2.8 | 10.1 |
Net sales, organic | $ 1,470.9 | $ 479.8 | $ 767.5 | $ 2,718.2 |
% change from PY | (0.7) % | 1.7 % | (0.9) % | (0.3) % |
Nine Months Ended | ||||
March 2, 2024 | ||||
| International | Global Retail | Total | |
Net sales, as reported | $ 1,481.2 | $ 471.9 | $ 786.4 | $ 2,739.5 |
Adjustments | ||||
HAY eCommerce | — | — | (11.8) | (11.8) |
Net sales, organic | $ 1,481.2 | $ 471.9 | $ 774.6 | $ 2,727.7 |
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to |
G. Organic Order Growth by Segment | ||||
Three Months Ended | ||||
March 1, 2025 | ||||
| International | Global Retail | Total | |
Orders, as reported | $ 434.0 | $ 159.2 | $ 259.9 | $ 853.1 |
% change from PY | (1.8) % | (1.6) % | 14.7 % | 2.7 % |
Adjustments | ||||
Currency translation effects (1) | 1.3 | 4.9 | 2.9 | 9.1 |
Orders, organic | $ 435.3 | $ 164.1 | $ 262.8 | $ 862.2 |
% change from PY | (1.5) % | 1.4 % | 16.9 % | 4.1 % |
Three Months Ended | ||||
March 2, 2024 | ||||
| International | Global | Total | |
Orders, as reported | $ 441.9 | $ 161.8 | $ 226.6 | $ 830.3 |
Adjustments | ||||
HAY eCommerce | — | — | (1.8) | (1.8) |
Orders, organic | $ 441.9 | $ 161.8 | $ 224.8 | $ 828.5 |
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to | ||||
Nine Months Ended | ||||
March 1, 2025 | ||||
| International | Global Retail | Total | |
Orders, as reported | $ 1,453.4 | $ 476.4 | $ 781.1 | $ 2,710.9 |
% change from PY | 2.8 % | (1.7) % | (1.1) % | 0.9 % |
Adjustments | ||||
Currency translation effects (1) | 1.8 | 8.2 | 3.2 | 13.2 |
Orders, organic | $ 1,455.2 | $ 484.6 | $ 784.3 | $ 2,724.1 |
% change from PY | 3.0 % | — % | 0.7 % | 1.8 % |
Nine Months Ended | ||||
March 2, 2024 | ||||
| International | Global Retail | Total | |
Orders, as reported | $ 1,413.3 | $ 484.7 | $ 790.0 | $ 2,688.0 |
Adjustments | ||||
HAY eCommerce | — | — | (11.4) | (11.4) |
Orders, organic | $ 1,413.3 | $ 484.7 | $ 778.6 | $ 2,676.6 |
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to |
H. Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate | ||||
Three Months Ended | Nine Months Ended | |||
March 1, 2025 | March 2, 2024 | March 1, 2025 | March 2, 2024 | |
Income tax (benefit) expense, as reported | $ (89.0) | $ 4.4 | $ (80.3) | $ 19.0 |
Effective Tax Rate | 88.3 % | 16.0 % | 139.5 % | 20.5 % |
Adjustments | ||||
Restructuring charges | 3.0 | 0.5 | 2.5 | 2.0 |
Integration charges | — | 2.1 | 16.8 | 5.4 |
Impairment charges | 90.5 | — | 77.1 | — |
Amortization of Knoll purchased intangibles | 4.2 | 1.7 | 10.6 | 4.9 |
Knoll pension plan termination charges | — | — | 0.3 | — |
Income tax expense (benefit), adjusted | 8.7 | 8.7 | 27.0 | 31.3 |
Adjusted Effective Tax Rate | 22.0 % | 20.3 % | 22.0 % | 22.7 % |
I. Consolidated MillerKnoll Backlog | |
Q3 FY2025 | |
MillerKnoll backlog |
About MillerKnoll
MillerKnoll is a collective of dynamic brands that comes together to design the world we live in. MillerKnoll brand portfolio includes Herman Miller, Knoll, Colebrook Bosson Saunders, DatesWeiser, Design Within Reach, Edelman, Geiger, HAY, Holly Hunt, Knoll Textiles, Maharam, Muuto, NaughtOne, and Spinneybeck|FilzFelt. MillerKnoll is an unparalleled platform that redefines modern for the 21st century by building a more sustainable, equitable and beautiful future for all.
Forward-Looking Statements
This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to future events and anticipated results of operations, business strategies, the anticipated benefits of our acquisition of Knoll, the anticipated impact of the Knoll acquisition on the combined Company's business and future financial and operating results, the expected amount and timing of synergies from the Knoll acquisition, the expected impact of recent and potential tariff changes on our business, and other aspects of our operations or operating results. These forward-looking statements generally can be identified by phrases such as "will," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of MillerKnoll or the price of MillerKnoll's stock. These forward-looking statements involve certain risks and uncertainties, many of which are beyond MillerKnoll's control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to: general economic and geopolitical conditions, including the impact of supply chain challenges, tariffs, and recessionary pressures; the impact of government policies and actions, including those relating to public health, government spending, and trade relations; the impact of public health crises, such as pandemics and epidemics; risks related to the additional debt incurred in connection with the Knoll acquisition; MillerKnoll's ability to comply with its debt covenants and obligations; the risk that the anticipated benefits of the Knoll acquisition will be more costly to realize than expected; the effect of the Knoll acquisition on the ability of MillerKnoll to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom MillerKnoll does business, or on MillerKnoll's operating results and business generally; the ability of MillerKnoll to implement its plans, forecasts and other expectations with respect to MillerKnoll's business after the completion of the Knoll acquisition and realize expected synergies; business disruption following the Knoll acquisition; the availability and pricing of raw materials; the financial strength of our dealers and the financial strength of our customers; the success of newly-introduced products; the pace and level of government procurement; foreign currency exchange fluctuations; and the outcome of pending litigation or governmental audits or investigations. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to MillerKnoll's periodic reports and other filings with the SEC, including the risk factors identified in MillerKnoll's most recent Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. The forward-looking statements included in this communication are made only as of the date hereof. MillerKnoll does not undertake any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.
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SOURCE MillerKnoll