AI Earnings Predictions for MillerKnoll Inc. (MLKN)

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MillerKnoll, Inc. Reports First Quarter Fiscal 2027 Results

Zeeland, Mich., September 22, 2026 – MillerKnoll Inc. (NASDAQ: MLKN), a growth-oriented small-cap value company in the industrial and consumer sectors, today reported results for the first quarter of fiscal year 2027, ended August 29, 2026.

First Quarter Fiscal 2027 Financial Results

(Unaudited)

Three Months Ended

(Dollars in millions, except per share data)August 29, 2026August 30, 2025% Chg.

(13 weeks)(13 weeks)

Net sales$923.4 $955.7 (3.4)%

Gross margin %41.7 %38.5 %

Operating expenses$333.5 $314.6 6.0 %

Adjusted operating expenses* $320.1 $308.0 3.9 %

Operating earnings %5.6 %5.6 %

Adjusted operating earnings %* 7.1 %6.3 %

Earnings per share - diluted$0.38 $0.29 31.0 %

Adjusted earnings per share - diluted*

$0.53 $0.45 17.8 %

*Items indicated represent Non-GAAP measurements; see the reconciliations of Non-GAAP financial measures and related explanations below.

"We delivered strong first quarter earnings, above expectations, reflecting solid execution across the enterprise. Despite softer than expected demand patterns in the quarter, we remain confident in our earnings outlook for the second quarter and full fiscal year. We are directing our efforts toward three key areas: focused priority setting, disciplined cost management, and strengthening our balance sheet for long-term value creation. Our results this quarter reflect the early impact of this work, and we expect this progress to continue," said Jeff Stutz, Interim Chief Executive Officer.

First Quarter Tariff Refund Impact

•During the first quarter of fiscal 2027, we recognized an approximate $10 million net increase in our operating income related to refunds received from the U.S. government of previously paid IEEPA tariffs (the "tariff refunds"). This resulted in a net per share benefit of $0.11 to our diluted earnings per share and 110 basis points of net improvement in our operating margin in the quarter.

First Quarter

•Net sales of $923.4 million, down 3.4% as reported and down 3.3% organically*, year-over-year

•Orders of $913.9 million, up 3.2% as reported and up 3.5% organically*, year-over-year

•Gross margin increased 320 basis points and adjusted gross margin* increased 330 basis points, primarily from the tariff refunds and price realization, partially offset by inflationary cost pressure

•Operating expenses increased to $333.5 million, and adjusted operating expenses* increased to $320.1 million, driven primarily by higher compensation expense, including variable incentive compensation, and higher new store expense, partially offset by improved cost management

•Operating expense special charges of $13.4 million:

◦$6.0 million of restructuring charges related to targeted workforce reductions and facility consolidations

◦$5.7 million of purchase accounting amortization

◦$1.7 million of CEO transition costs

•Operating margin of 5.6%, compared to 5.6% in the prior year, and adjusted operating margin* of 7.1%, compared to 6.3% in the prior year, included 110 basis points in net tariff refunds benefit

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•Diluted earnings per share of $0.38, compared to $0.29 in the prior year, and adjusted diluted earnings per share* of $0.53, compared to $0.45 in the prior year, included the $0.11 per share net benefit from tariff refunds

First Quarter 2027 Cash Flow, Debt, and Liquidity

•Liquidity, as of August 29, 2026, of $580.4 million reflected cash on hand and revolving credit facility availability

•Cash flow from operations of $49.1 million, compared to $9.4 million in the prior year

•Net debt-to-EBITDA ratio, as defined by our credit facility, of 2.75x

•Near term scheduled debt maturities:

◦$22.0 million in fiscal 2027

◦$25.8 million in fiscal 2028

◦$89.8 million in fiscal 2029

Dividend

•On July 14, 2026, MillerKnoll's Board of Directors declared a quarterly cash dividend of $0.1875 per share. The dividend is payable on October 15, 2026, to shareholders of record on August 29, 2026

First Quarter Fiscal 2027 Results by Segment

North America Contract

•Net sales of $505.6 million, down 5.3% as reported and down 5.2% organically*, year-over-year

•Orders of $483.7 million, down 1.7% as reported and down 1.6% organically*, year-over-year

•Operating margin of 9.4% compared to 10.7% in the prior year

•Adjusted operating margin* of 10.7%, down 70 basis points compared to prior year, primarily from deleverage on lower sales and inflationary cost pressure, partially offset by pricing realization and a benefit from tariff refunds

International Contract

•Net sales of $156.8 million, down 6.4% as reported and down 6.2% organically*, year-over-year

•Orders of $181.2 million, up 17.3% as reported and up 17.9% organically*, year-over-year

•Operating margin of 2.4% compared to 8.1% in the prior year

•Adjusted operating margin* of 4.6%, down 390 basis points year-over-year, primarily from deleverage on lowe

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