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MillerKnoll, Inc. (MLKN - Free Report) is encouraged by its retail business but the office side is lagging. This Zacks Rank #5 (Strong Sell) guided lightly for its fiscal fourth quarter.
Headquartered in Zeeland, MI, MillerKnoll is a collective of furniture brands. Its tag line cites Florence Knoll saying, "Good design is good business."
Its brands include 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 now organized in three segments: North American Contract and International Contract which represent the office side of the business and Global Retail which is the consumer side of the business.
Global Retail A Surprise for MillerKnoll in the Fiscal Third Quarter 2025
On Mar 26, 2025, MillerKnoll reported its fiscal third quarter 2025 results and met the Zacks Consensus of $0.44.
Net sales were up 0.4% to $876.2 million, driven by North America Contract and Global Retail.
During the quarter MillerKnoll saw a notable difference in demand in its retail businesses compared to most of its contract businesses. But it was retail businesses that out shined contract as overall demand in most geographies was sluggish in contract due to uncertainty related to tariff policy and other macroeconomic factors.
Conversely, in Global Retail, orders were up nearly 15%, with organic order up nearly 17%.
Retail demand in North America was strong with the adjusted Black Friday/Cyber Monday orders up 14% in the quarter.
Given the economic uncertainty around tariffs and global supply chains, it took steps to improve profitability. One of those was layoffs in the quarter.
As of Mar 1, 2025, MillerKnoll had cash on hand and availability on its revolving credit facility totaling $468.2 million. It also reduced its long-term debt by $60.7 million the third quarter.
It is also shareholder friendly. It repurchased approximately 0.8 million shares for $17.9 million in the third quarter. It also pays a dividend of $0.75 annually, which is currently yielding 4.3%.
MillerKnoll Guides Lighter Than the Zacks Consensus
For the fiscal fourth quarter 2025, MillerKnoll guided earnings in the range of $0.46 to $0.52. The Zacks Consensus was looking for $0.77.
The company did provide guidance on costs of tariffs, net of expected mitigation efforts, for the fourth quarter of $0.05 to $0.07. But it provided this guidance on Mar 26, 2025, which was the week before Apr 2, 2025, or Liberation Day, when President Trump revealed the US tariffs.
MillerKnoll said it would provide further updates on tariffs in future quarters.
The full year fiscal 2025 Zacks Consensus Estimate was cut on the light guidance. Zacks.com only has one estimate and it was cut in the last 30 days which moved the Zacks Consensus down to $1.86 from $2.12.
This is an earnings decline of 10.6% as the company made $2.08 in fiscal 2024.
The analyst also cut the estimate for fiscal 2026 at the same time as the Zacks Consensus fell to $2.12 from $2.70. However, that's earnings growth of about 14%.
Here's how it the earnings cut looks on the price and consensus chart.
Image Source: Zacks Investment Research
Shares Take a Dive in 2025
Shares of MillerKnoll have sold off over the last year, falling 35.4%, but the decline has accelerated in 2025 during the tariff sell-off.
Image Source: Zacks Investment Research
It's down 22.5% year-to-date.
MillerKnoll is cheap, with a forward P/E of 9.3. But it looks like a value trap as the earnings are being cut.
However, MillerKnoll has the two distinct business segments, commercial and consumer, which provides it with diversity. Right now, Global Retail is outperforming but there is a lot of uncertainty out there.
Investors interested in MillerKnoll's great furniture brands might want to stay on the sidelines until there is some certainty about tariffs and the global economy. Keep it on your watch list.
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Bear of the Day: MillerKnoll (MLKN)
MillerKnoll, Inc. (MLKN - Free Report) is encouraged by its retail business but the office side is lagging. This Zacks Rank #5 (Strong Sell) guided lightly for its fiscal fourth quarter.
Headquartered in Zeeland, MI, MillerKnoll is a collective of furniture brands. Its tag line cites Florence Knoll saying, "Good design is good business."
Its brands include 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 now organized in three segments: North American Contract and International Contract which represent the office side of the business and Global Retail which is the consumer side of the business.
Global Retail A Surprise for MillerKnoll in the Fiscal Third Quarter 2025
On Mar 26, 2025, MillerKnoll reported its fiscal third quarter 2025 results and met the Zacks Consensus of $0.44.
Net sales were up 0.4% to $876.2 million, driven by North America Contract and Global Retail.
During the quarter MillerKnoll saw a notable difference in demand in its retail businesses compared to most of its contract businesses. But it was retail businesses that out shined contract as overall demand in most geographies was sluggish in contract due to uncertainty related to tariff policy and other macroeconomic factors.
Conversely, in Global Retail, orders were up nearly 15%, with organic order up nearly 17%.
Retail demand in North America was strong with the adjusted Black Friday/Cyber Monday orders up 14% in the quarter.
Given the economic uncertainty around tariffs and global supply chains, it took steps to improve profitability. One of those was layoffs in the quarter.
As of Mar 1, 2025, MillerKnoll had cash on hand and availability on its revolving credit facility totaling $468.2 million. It also reduced its long-term debt by $60.7 million the third quarter.
It is also shareholder friendly. It repurchased approximately 0.8 million shares for $17.9 million in the third quarter. It also pays a dividend of $0.75 annually, which is currently yielding 4.3%.
MillerKnoll Guides Lighter Than the Zacks Consensus
For the fiscal fourth quarter 2025, MillerKnoll guided earnings in the range of $0.46 to $0.52. The Zacks Consensus was looking for $0.77.
The company did provide guidance on costs of tariffs, net of expected mitigation efforts, for the fourth quarter of $0.05 to $0.07. But it provided this guidance on Mar 26, 2025, which was the week before Apr 2, 2025, or Liberation Day, when President Trump revealed the US tariffs.
MillerKnoll said it would provide further updates on tariffs in future quarters.
The full year fiscal 2025 Zacks Consensus Estimate was cut on the light guidance. Zacks.com only has one estimate and it was cut in the last 30 days which moved the Zacks Consensus down to $1.86 from $2.12.
This is an earnings decline of 10.6% as the company made $2.08 in fiscal 2024.
The analyst also cut the estimate for fiscal 2026 at the same time as the Zacks Consensus fell to $2.12 from $2.70. However, that's earnings growth of about 14%.
Here's how it the earnings cut looks on the price and consensus chart.
Image Source: Zacks Investment Research
Shares Take a Dive in 2025
Shares of MillerKnoll have sold off over the last year, falling 35.4%, but the decline has accelerated in 2025 during the tariff sell-off.
Image Source: Zacks Investment Research
It's down 22.5% year-to-date.
MillerKnoll is cheap, with a forward P/E of 9.3. But it looks like a value trap as the earnings are being cut.
However, MillerKnoll has the two distinct business segments, commercial and consumer, which provides it with diversity. Right now, Global Retail is outperforming but there is a lot of uncertainty out there.
Investors interested in MillerKnoll's great furniture brands might want to stay on the sidelines until there is some certainty about tariffs and the global economy. Keep it on your watch list.