Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: MillerKnoll (MLKN) Stock Analysis - MillerKnoll (MLKN) has shown a price increase of 18.4% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, MLKN's stock gained 62.3%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - MLKN has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - MLKN is trading at a Price-to-Sales ratio of 0.41, indicating it is relatively cheap at present [7] Group 3: Additional Investment Opportunities - Besides MLKN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, which may also present investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify potential winning stocks [9]

Core Insights - MillerKnoll has been named to the Fortune World's Most Admired Companies 2026 list, highlighting its commitment to innovation and strong corporate values [1][4] - The company was formed in 2021 through the merger of Herman Miller and Knoll, building on over a century of design excellence [3][6] - In fiscal year 2025, MillerKnoll generated net sales of $3.7 billion, indicating strong financial performance [6] Company Recognition - This marks MillerKnoll's first appearance on the Fortune list, following other accolades such as Fast Company's Best Workplaces for Innovators and Newsweek's America's Greenest Companies [4] - The evaluation for the Fortune list is based on nine criteria, including investment value, quality of management, and social responsibility [2] Future Growth Strategy - MillerKnoll plans to expand its retail footprint, accelerate innovation, and enhance design's role in sustainability and inspiration in 2026 [5]

Core Insights - MillerKnoll has appointed Claire Spofford to its Board of Directors, enhancing its leadership with her extensive retail experience [1][3]. Group 1: Appointment Details - Claire Spofford has over 30 years of experience in driving growth across leading consumer brands, with expertise in omnichannel strategy, brand development, and operational excellence [2]. - Spofford previously served as President and CEO of J. Jill, where she transformed the business and strengthened margins [2]. - Her past roles include President of Cornerstone Brands and President of Garnet Hill, where she successfully evolved both brands into digitally driven platforms [2]. Group 2: Company Strategy and Vision - CEO Andi Owen expressed that Spofford's insights and governance experience will enhance the board as the company aims for long-term value creation [3]. - Spofford expressed her honor in supporting MillerKnoll's growth strategy, highlighting the exciting opportunities in both consumer retail and workplace contract segments [3]. - With Spofford's addition, MillerKnoll's Board now consists of eleven directors, ten of whom are independent, further strengthening the board for the next era of growth and innovation [3]. Group 3: Company Overview - MillerKnoll is a global collective of design brands, including Herman Miller and Knoll, focusing on furniture and accessories for commercial and residential spaces [4]. - The company generated net sales of $3.7 billion in fiscal year 2025, indicating a strong market presence [4].

Core Insights - The Zacks Furniture industry is focusing on long-term growth through innovation, digital expansion, and product evolution, leveraging e-commerce, AI-driven personalization, and AR/VR tools to enhance customer engagement [1][4][5] - Demand for multifunctional furniture, particularly from millennials and Gen Z, is driving new product development, while strategic acquisitions and partnerships are enhancing growth opportunities [1][6] Industry Overview - The Zacks Furniture industry includes manufacturers, designers, and marketers of residential and commercial furnishing solutions, with involvement in various sectors such as construction, healthcare, and retail [3] - Companies are diversifying their portfolios and expanding their geographic reach, particularly in resilient sectors like healthcare and public infrastructure [6] Trends Impacting the Industry - The industry is experiencing significant growth in e-commerce and digital transformation, with investments in technology to improve customer experiences and operational efficiency [4][5] - There is a rising demand for multifunctional furniture due to urban living constraints, with products like convertible sofas and foldable tables gaining popularity [4] Economic Challenges - Near-term headwinds include cautious consumer spending and weak housing activity, which are negatively impacting demand for big-ticket furniture [2][7] - Elevated costs related to labor, occupancy, and marketing, along with competitive pricing and supply-chain inefficiencies, are pressuring profit margins [2][9] Performance Metrics - The Zacks Furniture industry has underperformed compared to the broader Zacks Consumer Discretionary sector and the S&P 500, declining 20.4% over the past year [13] - The industry is currently trading at a forward P/E of 10.12X, significantly lower than the S&P 500's 23.11X and the sector's 18.24X [17] Company Highlights - La-Z-Boy is expanding its retail footprint and optimizing its portfolio, with a focus on its core upholstery business, which is expected to enhance margins [19][20] - Bassett is benefiting from product innovation and improved customer engagement through its Custom Studio concept, which is expected to drive profitability despite market challenges [24][28] - MillerKnoll is experiencing growth through strategic retail expansion and product innovation, particularly in contract markets, supported by a return-to-office trend [27][30]

Financial Performance - Net earnings for the six months ended November 29, 2025, increased to $46.3 million, up from $34.7 million in the same period last year, representing a growth of 33.6%[9] - For the six months ended November 30, 2024, MillerKnoll reported a net loss of $1.2 million, compared to net earnings of $34.1 million for the same period in the previous year[11] - The company reported net earnings of $46.3 million for the six months ended November 29, 2025, compared to $34.7 million for the same period in the previous year, representing a 33.6% increase[9] - For the three months ended November 29, 2025, net earnings attributable to MillerKnoll, Inc. were $24.2 million, compared to $34.1 million for the same period in 2024, representing a decrease of 29.1%[47] Revenue and Sales - Total revenue for the six months ended November 30, 2024, was $1,910.9 million, representing an increase of 4.3% from $1,831.9 million in the prior year[28] - Total net sales for the three months ended November 29, 2025, were $955.2 million, a decrease of 1.3% compared to $970.4 million for the same period in 2024[30] - North America Contract revenue for the six months ended November 30, 2024, was $1,042.4 million, up from $1,000.9 million, reflecting a growth of 4.1%[28] - The North America Contract segment reported net sales of $508.5 million, down 3.3% from $524.7 million in the prior year[93] - The International Contract segment reported net sales of $170.9 million for the three months ended November 29, 2025, compared to $182.4 million in the same period of 2024, a decline of 6.5%[93] - The Global Retail segment achieved net sales of $275.8 million for the three months ended November 29, 2025, an increase from $263.3 million in the prior year, reflecting a growth of 4.8%[93] Assets and Liabilities - Total current assets as of November 29, 2025, were $1,118.4 million, slightly up from $1,108.7 million as of May 31, 2025[8] - Total liabilities decreased to $2,583.6 million as of November 29, 2025, from $2,615.1 million as of May 31, 2025, a reduction of 1.2%[8] - The carrying value of the Company's long-term debt as of November 29, 2025, is $1,350.2 million, with a fair value of $1,295.6 million[52] - The company reported a decrease in accounts receivable, net of allowance, to $325.3 million as of November 29, 2025, from $350.2 million as of May 31, 2025[8] Cash Flow and Expenditures - Cash and cash equivalents decreased to $180.4 million as of November 29, 2025, from $193.7 million at the beginning of the period, a decline of 6.8%[9] - The company reported a net cash provided by operating activities of $74.0 million for the six months ended November 29, 2025, compared to $76.4 million for the same period last year[9] - Capital expenditures for the six months ended November 29, 2025, were $61.3 million, up from $44.9 million in the prior year, indicating a 36.5% increase[9] - Capital expenditures for the total segments were $30.6 million for the three months ended November 29, 2025, compared to $22.3 million for the same period in 2024, an increase of 37.0%[95] Stockholders' Equity and Dividends - Stockholders' equity increased to $1,299.7 million as of November 29, 2025, from $1,275.8 million as of May 31, 2025, reflecting a growth of 1.9%[10] - The company declared dividends of $0.1875 per share, totaling $13.1 million for the six months ended November 29, 2025[10] - Total stockholders' equity decreased to $1,310.8 million as of November 30, 2024, down from $1,332.5 million at the end of the previous period[11] Impairments and Charges - The Company recognized a total non-cash goodwill impairment charge of $92.3 million during the third quarter of fiscal year 2025, primarily due to reduced sales and profitability projections[36] - The Company recognized $37.7 million in non-cash impairment charges related to indefinite-lived trade names during the third quarter of fiscal year 2025[43] - Goodwill impairment charges of $30.1 million and $62.2 million were recognized in the Global Retail and Holly Hunt reporting units, respectively, due to reduced sales and profitability projections[36] Tax and Compensation - The effective tax rate for the six months ended November 29, 2025, was 24.3%, up from 20.0% for the same period in 2024, reflecting an increase of 21.5%[50] - Stock-based compensation expense for the six months ended November 29, 2025, was $9.3 million, compared to $9.1 million for the same period in the previous year[10][11] - The total stock-based compensation expense for the six months ended November 29, 2025, was $15.1 million, down from $17.9 million in the prior year, a decrease of 15.6%[48] Restructuring and Integration - The company incurred restructuring costs of $1.5 million in North America for the three months ended November 29, 2025, and $2.0 million for the six months ended November 29, 2025[107] - The company has recorded a total of $144.4 million in pre-tax integration expenses related to the Knoll Integration plan, with no future costs expected[98] - The company incurred $28.3 million in costs related to the Knoll Integration for the six months ended November 30, 2024, which included $25.8 million of exit and disposal costs[99] Market and Segment Performance - The company operates under a collective of globally recognized design brands, enhancing its market presence and brand equity[14] - The company’s performance seating category focuses on ergonomic seating solutions, which are essential for productivity across diverse settings[24][26] - The workplace category emphasizes the development of products that enhance functionality and productivity in work environments[24][25]

Core Viewpoint - MillerKnoll Inc. reported stronger-than-expected adjusted earnings for Q2 fiscal 2026, leading to a significant increase in share price [1] Financial Performance - The company posted adjusted earnings of $0.43 per share, surpassing the consensus estimate of $0.41 [2] - Revenue for the quarter was $955.2 million, slightly below analyst expectations of $962.47 million, and represented a year-over-year decline of 1.6% [2] - On an organic basis, sales decreased by 2.5% compared to the previous year [2] Future Outlook - For Q3, MillerKnoll forecasts revenue between $923 million and $963 million, exceeding the consensus estimate of $909.6 million [3] - Adjusted earnings for Q3 are projected to be between $0.42 and $0.48 per share, above the $0.41 expected by analysts [3] Operational Metrics - Despite the revenue decline, the company experienced order growth of 5.5%, totaling $972.5 million, with increases across all business segments [4] - Gross margin improved by 20 basis points to 39.0%, while adjusted operating margin decreased to 5.9% from 7.1% in the prior-year quarter [4]

Core Insights - MillerKnoll, Inc. (MLKN) reported its fiscal Q2 '26 earnings, indicating signs of a potential turnaround, prompting a rating change from Hold to a more favorable position [1] Financial Performance - The earnings report for fiscal Q2 '26 suggests improvements in the company's financial health, which may attract long-term investors [1] Investment Strategy - The company is viewed as a mix of growth, value, and dividend-paying stocks, with a particular emphasis on value investing [1]

Company Performance - MillerKnoll Inc reported quarterly adjusted earnings of 43 cents per share, exceeding the analyst estimate of 41 cents [1] - Quarterly sales reached $955.2 million, surpassing the Street estimate of $943.13 million [1] - The company's shares rose 8.8% to $19.07 in pre-market trading following the earnings report [2] Market Reactions - Other stocks also experienced significant movements in pre-market trading, with Sable Offshore Corp surging 44.5% to $7.63 after federal confirmation of interstate pipeline classification [5] - Micron Technology Inc gained 9.4% to $247.20 after reporting better-than-expected earnings for the first quarter of fiscal 2026 [5] - Conversely, Mega Fortune Co Ltd fell 53.5% to $6.07 after a previous jump of 144% [5]

Core Insights - U.S. stock futures are trading mixed, with several companies expected to report earnings that may attract investor attention [1] Company Summaries - **Accenture Plc (NYSE:ACN)**: Expected to report quarterly earnings of $3.75 per share on revenue of $18.52 billion. Shares gained 0.2% to $274.27 in after-hours trading [1] - **Micron Technology Inc. (NASDAQ:MU)**: Reported first-quarter revenue of $13.64 billion, exceeding analyst estimates of $12.83 billion. Adjusted earnings were $4.78 per share, surpassing estimates of $3.95 per share. Shares climbed 8% to $243.74 in after-hours trading [1] - **FedEx Corp. (NYSE:FDX)**: Analysts expect quarterly earnings of $4.10 per share on revenue of $22.79 billion, with earnings to be released after market close. Shares rose 0.4% to $283.21 in after-hours trading [1] - **MillerKnoll, Inc. (NASDAQ:MLKN)**: Posted better-than-expected earnings for the second quarter and provided a strong forecast for the current quarter. Shares surged 9.2% to $19.14 in after-hours trading [1] - **Nike Inc. (NYSE:NKE)**: Expected to report quarterly earnings of 38 cents per share on revenue of $12.22 billion after market close. Shares rose 0.3% to $65.88 in after-hours trading [1]

Core Insights - MillerKnoll reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, but down from $0.55 per share a year ago, indicating an earnings surprise of +2.38% [1] - The company achieved revenues of $955.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.18%, although this is a decrease from $970.4 million in the same quarter last year [2] - MillerKnoll has outperformed consensus EPS estimates three times in the last four quarters, but the stock has underperformed the market, losing about 26.1% year-to-date compared to the S&P 500's gain of 15.6% [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $922.4 million, and for the current fiscal year, it is $1.86 on revenues of $3.8 billion [7] - The trend of estimate revisions for MillerKnoll was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Furniture industry, to which MillerKnoll belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]