Financial Data and Key Metrics Changes - The company reported consolidated net sales of $956 million for Q1, representing a growth of 10.9% year-over-year and 10% on an organic basis [12][13] - Adjusted EPS for the quarter was $0.45, a 25% increase compared to the previous year [12] - Consolidated gross margin was 38.5%, impacted by approximately $8 million in net tariff-related costs [14][15] Business Line Data and Key Metrics Changes - In the North America contract segment, net sales were $534 million, up 12% year-over-year, while new orders decreased by 8% [15][16] - The international contract segment saw net sales of $168 million, a 14.4% increase, but new orders were down 6.5% [16][17] - The global retail segment reported net sales of $254 million, up 6.4% year-over-year, with new orders increasing by 1.7% [17][18] Market Data and Key Metrics Changes - Office leasing activity for Class A space remains robust, with Manhattan leasing activity in August exceeding the 10-year monthly average [7] - North America retail web traffic increased by 17% compared to last year, indicating strong consumer interest [9] Company Strategy and Development Direction - The company is focusing on accelerated product creation, consistent execution, and prudent cost management while investing for profitable growth [6] - Plans include opening 12 to 15 new stores in the U.S. for the fiscal year, aiming to double the store footprint over the next several years [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum in the contract business, driven by increased office leasing activity and improving market conditions [7] - The company anticipates that tariff-related impacts will be mitigated in the second half of the fiscal year, with pricing actions expected to offset costs [19][20] Other Important Information - The company has a strong liquidity position with $481 million available and a net debt to EBITDA ratio of 2.92 times [15] - Management highlighted the importance of their workforce, noting recognition as a top workplace for innovators [11] Q&A Session Summary Question: Normalization of growth in the Americas - Management confirmed that growth has averaged 3.3% over the trailing two-quarter basis, with volume being a key driver [25][28] Question: Impact of discounting on projects - Management stated that discounting has remained stable and has not increased [33] Question: Breakdown of retail margin pressures - New store expenses were identified as the primary factor impacting retail margins, with expectations of revenue growth from new stores in the future [34][35] Question: Industry consolidation and competitive outlook - Management views industry consolidation positively, seeing it as an opportunity for growth and differentiation [44] Question: Tariff impacts and mitigation efforts - Management indicated that the net tariff-related impact was $8 million in Q1, with expectations for reduced impact in Q2 as pricing actions take effect [50]

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $956 million for Q1 2026, representing a growth of 10.9% year-over-year and 10% on an organic basis [13] - Adjusted earnings per share (EPS) increased by 25% to $0.45, significantly outperforming guidance [13] - Consolidated gross margin for the quarter was 38.5%, impacted by approximately $8 million in net tariff-related costs [14] Business Line Data and Key Metrics Changes - In the North America contract segment, net sales were $534 million, up 12% year-over-year, while new orders decreased by 8% [16] - The international contract segment saw net sales improve to $168 million, a 14.4% increase, but new orders were down 6.5% [18] - The global retail segment reported net sales of $254 million, up 6.4% year-over-year, with new orders improving by 1.7% [19] Market Data and Key Metrics Changes - Office leasing activity for Class A space remains robust, with Manhattan leasing activity in August exceeding the 10-year monthly average [8] - North America retail web traffic increased by 17% year-over-year, indicating strong consumer interest [10] Company Strategy and Development Direction - The company is focusing on accelerated product creation, consistent execution, and prudent cost management while investing for profitable growth [6] - Plans include opening 12 to 15 new stores in the U.S. for the fiscal year, aiming to double the store footprint over the next several years [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum in the contract business, driven by increased office leasing activity and improving market conditions [8] - The company anticipates that pricing actions will offset tariff impacts in the second half of the fiscal year [14][20] Other Important Information - The company has undergone leadership changes, with Jeff Stutz promoted to Chief Operating Officer and Kevin Veltman serving as Interim Chief Financial Officer [4][5] - The company was recognized as a great workplace for innovators, reflecting its commitment to employee engagement [12] Q&A Session Summary Question: Normalization of growth in the Americas - Management confirmed that North America contract growth averaged 3.3% over the last two quarters, with volume being a key driver [27][29] Question: Impact of discounting on pricing - Management indicated that discounting has remained stable and has not increased [32] Question: Breakdown of retail margin pressures - New store expenses were identified as the primary factor impacting retail margins, with expectations of revenue growth from new stores in the future [34][35] Question: Industry consolidation and competitive outlook - Management views industry consolidation positively, seeing it as an opportunity for growth and differentiation [42] Question: Tariff impacts and mitigation efforts - Management clarified that the $8 million net tariff-related impact in Q1 is expected to decrease in Q2, with pricing actions in place to mitigate future costs [48][49]

Investor Presentation First Quarter FY26 NASDAQ: MLKN Forward looking statements This presentation 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 include those relating to future events, anticipated results of operations, our expectations regarding future market conditions, our business strategies, our assessment of risks we face, and other aspects of our operations or oper ...

[First Quarter Fiscal 2026 Results Overview](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Results%20Overview) MillerKnoll Inc. achieved strong Q1 FY2026 results, driven by robust execution, improving market conditions, and strategic growth initiatives [Executive Summary](index=1&type=section&id=Executive%20Summary) MillerKnoll Inc. reported strong Q1 FY2026 results, exceeding expectations through robust execution and strategic growth - MillerKnoll Inc. reported **strong Q1 FY2026 results**, exceeding expectations[1](index=1&type=chunk)[5](index=5&type=chunk) - Performance driven by strong execution, improving conditions in key markets, and strategic growth initiatives[5](index=5&type=chunk) - The business model delivered revenue and earnings growth while maintaining balance sheet strength[5](index=5&type=chunk) [Consolidated Financial Highlights](index=1&type=section&id=Consolidated%20Financial%20Highlights) MillerKnoll reported significant Q1 FY2026 increases in net sales and operating earnings, with adjusted diluted EPS growth despite a slight gross margin decrease Consolidated Financial Highlights (Dollars in millions, except per share data) | (Dollars in millions, except per share data) | August 30, 2025 | August 31, 2024 | % Chg. | | :------------------------------------------ | :-------------- | :-------------- | :----- | | Net sales | $955.7 | $861.5 | 10.9 % | | Gross margin % | 38.5 % | 39.0 % | (1.3)% | | Operating expenses | $314.6 | $321.1 | (2.0)% | | * Adjusted operating expenses | $308.0 | $286.9 | 7.4 % | | Operating earnings % | 5.6 % | 1.8 % | 211.1 %| | * Adjusted operating earnings % | 6.3 % | 5.8 % | 8.6 % | | (1) Earnings (loss) per share - diluted | $0.29 | $(0.02) | N/A | | *(1) Adjusted earnings per share - diluted | $0.45 | $0.36 | 25.0 % | - Net sales of **$955.7 million**, up **10.9%** as reported and **10.0% organically**, year-over-year[3](index=3&type=chunk) - Orders of **$885.4 million**, down **5.4%** as reported and **6.2% organically**, year-over-year, primarily due to order pull-forward in North America Contract segment in Q4 FY2025[3](index=3&type=chunk) - Gross margin decreased **50 basis points**, mainly from **$8.0 million** net tariff-related impact, partially offset by leverage on higher net sales[3](index=3&type=chunk) [Cash Flow, Debt, and Liquidity](index=2&type=section&id=Cash%20Flow%2C%20Debt%2C%20and%20Liquidity) MillerKnoll maintained strong liquidity, refinanced its Term Loan B to 2032, and reported $9.4 million in operating cash flow with a 2.92x net debt-to-EBITDA ratio - Liquidity as of August 30, 2025, was **$480.5 million**, including cash on hand and Revolving Credit Facility availability[8](index=8&type=chunk) - Issued **$550 million** Term Loan B, replacing existing debt and extending maturity to 2032[8](index=8&type=chunk) - Cash flow from operations was **$9.4 million**[8](index=8&type=chunk) - Net debt-to-EBITDA ratio was **2.92x**[8](index=8&type=chunk) Near Term Scheduled Debt Maturities (millions) | Fiscal Year | Amount (millions) | | :---------- | :---------------- | | 2026 | $12.4 | | 2027 | $23.3 | | 2028 | $25.8 | [Results by Segment](index=2&type=section&id=Results%20by%20Segment) All MillerKnoll segments reported Q1 FY2026 net sales growth, with varied order trends and operating margins influenced by market dynamics [North America Contract](index=2&type=section&id=North%20America%20Contract) North America Contract achieved significant net sales growth and increased operating margin, despite an order decline due to prior quarter pull-ahead - Q1 net sales of **$533.9 million**, up **12.1%** on both reported and organic basis, year-over-year[9](index=9&type=chunk) - Q1 orders of **$492.2 million**, down **8.2%** as reported and organically, year-over-year, primarily due to an estimated **$55 million to $60 million** order pull-ahead from Q4 FY2025 pricing actions[9](index=9&type=chunk) - Q1 operating margin of **10.7%** compared to **3.4%** in the prior year; adjusted operating margin of **11.4%**, up **200 basis points**, driven by fixed expense leverage on higher net sales, partially offset by higher net tariff-related impact[9](index=9&type=chunk) [International Contract](index=2&type=section&id=International%20Contract) International Contract saw strong net sales growth but declining orders, with improved operating margin and a slight adjusted margin decrease - Q1 net sales of **$167.5 million**, up **14.4%** as reported and **11.3% organically**, year-over-year[9](index=9&type=chunk) - Q1 orders of **$154.5 million**, down **6.5%** as reported and **9.2% organically**, year-over-year[9](index=9&type=chunk) - Q1 operating margin of **8.1%** compared to **6.5%** in the prior year; adjusted operating margin of **8.5%**, down **60 basis points** year-over-year, primarily from regional and product sales mix[9](index=9&type=chunk) [Global Retail](index=3&type=section&id=Global%20Retail) Global Retail reported net sales and order growth, but operating margin declined due to increased freight, tariffs, and new store opening costs - Q1 net sales of **$254.3 million**, up **6.4%** as reported and **4.9% organically**, year-over-year[13](index=13&type=chunk) - Q1 orders of **$238.7 million**, up **1.7%** as reported and **0.3% organically**, year-over-year, with North America region orders up **8%**[13](index=13&type=chunk) - Q1 operating margin of **0.6%** compared to **2.2%** in the prior year; adjusted operating margin of **1.2%**, down **190 basis points** year-over-year, primarily from increased freight costs, higher net tariff-related impact, and new retail store opening costs[13](index=13&type=chunk) - Opened two DWR stores (Sarasota, FL, and Las Vegas, NV) and two Herman Miller stores (Chicago, IL, and Philadelphia, PA) in Q1[13](index=13&type=chunk) [Second Quarter Fiscal 2026 Outlook](index=3&type=section&id=Second%20Quarter%20Fiscal%202026%20Outlook) MillerKnoll projects Q2 FY2026 net sales between $926 million and $966 million, with adjusted diluted EPS of $0.38 to $0.44, including tariff and new store costs Q2 FY2026 Financial Operating Results Expectations | Q2 FY2026 | Range | | :------------------------------ | :------------------------- | | Net sales | $926 million to $966 million | | Gross margin % | 37.6% to 38.6% | | Adjusted operating expenses* | $300 million to $310 million | | Interest and other expense, net | $16.2 million to $17.2 million | | Adjusted effective tax rate* | 22.0% to 24.0% | | Adjusted earnings per share - diluted* | $0.38 to $0.44 | - Guidance ranges include estimated incremental costs related to tariffs (net of expected mitigation efforts) between **$2 million to $4 million** before tax, and **$0.02 to $0.04** of net earnings per share[14](index=14&type=chunk) - Operating expense outlook reflects costs related to four new retail store openings in Q2 FY2026[14](index=14&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents MillerKnoll's unaudited condensed consolidated financial statements, including statements of operations, cash flows, and balance sheets [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) The statements of operations highlight MillerKnoll's Q1 FY2026 financial performance, showing significant increases in net sales and operating earnings Condensed Consolidated Statements of Operations (Three Months Ended) | (Unaudited) (Dollars in millions, except per share and common share data) | August 30, 2025 | % | August 31, 2024 | % | | :---------------------------------------------------------------------- | :-------------- | :----- | :-------------- | :----- | | Net sales | $955.7 | 100.0 %| $861.5 | 100.0 %| | Cost of sales | 587.6 | 61.5 % | 525.2 | 61.0 % | | Gross margin | 368.1 | 38.5 % | 336.3 | 39.0 % | | Operating expenses | 314.6 | 32.9 % | 321.1 | 37.3 % | | Operating earnings | 53.5 | 5.6 % | 15.2 | 1.8 % | | Other expenses, net | 24.8 | 2.6 % | 16.9 | 2.0 % | | Earnings (loss) before income taxes and equity income | 28.7 | 3.0 % | (1.7) | (0.2)% | | Income tax expense (benefit) | 7.6 | 0.8 % | (1.1) | (0.1)% | | Equity income (loss), net of tax | — | — % | 0.1 | — % | | Net earnings (loss) | 21.1 | 2.2 % | (0.5) | (0.1)% | | Net earnings attributable to redeemable noncontrolling interests | 0.9 | 0.1 % | 0.7 | 0.1 % | | Net earnings (loss) attributable to MillerKnoll, Inc. | $20.2 | 2.1 % | $(1.2) | (0.1)% | | Earnings (loss) per share - basic | $0.29 | | ($0.02) | |\ | Weighted average basic common shares | 68,519,141 | | 70,206,373 | | | Earnings (loss) per share - diluted | $0.29 | | ($0.02) | | | Weighted average diluted common shares | 69,194,506 | | 70,206,373 | | [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) The statements of cash flows show decreased operating cash flow, increased investing cash use, and reduced financing cash use for Q1 FY2026 Condensed Consolidated Statements of Cash Flows (Three Months Ended, Dollars in millions) | (Unaudited) (Dollars in millions) | August 30, 2025 | August 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Cash provided by (used in): | | | | Operating activities | $9.4 | $21.1 | | Investing activities | (30.5) | (22.3) | | Financing activities | (9.2) | (20.3) | | Effect of exchange rate changes | 3.8 | 0.8 | | Net change in cash and cash equivalents | (26.5) | (20.7) | | Cash and cash equivalents, beginning of period | 193.7 | 230.4 | | Cash and cash equivalents, end of period | $167.2 | $209.7 | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) The balance sheets indicate a slight decrease in total assets and liabilities, with decreased cash and increased inventories from May to August 2025 Condensed Consolidated Balance Sheets (Dollars in millions) | (Unaudited) (Dollars in millions) | August 30, 2025 | May 31, 2025 | | :-------------------------------- | :-------------- | :----------- | | **ASSETS** | | | | Current Assets: | | | | Cash and cash equivalents | $167.2 | $193.7 | | Accounts receivable, net | 332.1 | 350.2 | | Unbilled accounts receivable | 33.2 | 26.9 | | Inventories, net | 465.8 | 447.5 | | Prepaid expenses and other | 91.5 | 90.4 | | Total current assets | 1,089.8 | 1,108.7 | | Net property and equipment | 502.6 | 496.1 | | Right of use assets | 412.1 | 411.2 | | Other assets | 1,936.5 | 1,934.2 | | Total Assets | $3,941.0 | $3,950.2 | | **LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY** | | | | Current Liabilities: | | | | Accounts payable | $253.6 | $271.3 | | Short-term borrowings and current portion of long-term debt | 16.4 | 16.0 | | Short-term lease liability | 75.7 | 72.0 | | Accrued liabilities | 306.3 | 344.5 | | Total current liabilities | 652.0 | 703.8 | | Long-term debt | 1,327.5 | 1,310.6 | | Lease liabilities | 409.0 | 413.4 | | Other liabilities | 190.1 | 187.3 | | Total Liabilities | 2,578.6 | 2,615.1 | | Redeemable Noncontrolling Interests | 62.9 | 59.3 | | Stockholders' Equity | 1,299.5 | 1,275.8 | | Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity | $3,941.0 | $3,950.2 | [Non-GAAP Financial Measures and Other Supplemental Data](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Supplemental%20Data) This section provides definitions, adjustments, and reconciliations for non-GAAP financial measures, along with segment descriptions [Non-GAAP Definitions](index=8&type=section&id=Non-GAAP%20Definitions) This section defines key non-GAAP financial measures, presented to offer a comparative basis for investors alongside GAAP results - Non-GAAP measures are presented to provide financial information on a more comparative basis for investors, not as alternatives to GAAP[19](index=19&type=chunk) - Definitions provided for: 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)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) [Non-GAAP Adjustments and Segment Descriptions](index=9&type=section&id=Non-GAAP%20Adjustments%20and%20Segment%20Descriptions) This section details specific adjustments for non-GAAP measures and describes MillerKnoll's reportable segments - Adjustments include Amortization of Knoll purchased intangibles, Integration charges, Restructuring charges, Knoll pension plan termination charges, Debt extinguishment charges, Impairment charges, and Tax related items[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - Segment descriptions: North America Contract (furniture for office, healthcare, education in US/Canada, plus specific brands), International Contract (furniture in Europe, MEA, APAC, LatAm), Global Retail (modern design furnishings to third-party retailers and D2C, plus Holly Hunt brand), and Corporate (unallocated general corporate expenses)[30](index=30&type=chunk) [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations from GAAP to non-GAAP financial measures for various metrics on a consolidated and segment basis [Operating Earnings to Adjusted Operating Earnings by Segment](index=10&type=section&id=Operating%20Earnings%20to%20Adjusted%20Operating%20Earnings%20by%20Segment) This reconciliation details adjustments from GAAP to adjusted operating earnings for each segment and consolidated MillerKnoll, highlighting specific charges Reconciliation of Operating Earnings (Loss) to Adjusted Operating Earnings (Loss) by Segment (millions) | Segment / Metric | August 30, 2025 (millions) | August 31, 2024 (millions) | | :-------------------------------- | :------------------------- | :------------------------- | | **North America Contract** | | | | Operating earnings | $56.9 | $16.1 | | Adjustments | 4.2 | 28.8 | | Adjusted operating earnings | $61.1 | $44.9 | | **International Contract** | | | | Operating earnings | $13.5 | $9.5 | | Adjustments | 0.8 | 3.8 | | Adjusted operating earnings | $14.3 | $13.3 | | **Global Retail** | | | | Operating earnings | $1.4 | $5.3 | | Adjustments | 1.6 | 2.1 | | Adjusted operating earnings | $3.0 | $7.4 | | **Corporate** | | | | Operating (loss) | $(18.3) | $(15.7) | | Adjusted operating (loss) | $(18.3) | $(15.7) | | **MillerKnoll, Inc. (Consolidated)** | | | | Operating earnings | $53.5 | $15.2 | | Adjustments | 6.6 | 34.7 | | Adjusted operating earnings | $60.1 | $49.9 | [Earnings per Share to Adjusted Earnings per Share](index=12&type=section&id=Earnings%20per%20Share%20to%20Adjusted%20Earnings%20per%20Share) This reconciliation details adjustments from diluted EPS to adjusted diluted EPS, including amortization, integration, restructuring, and debt extinguishment charges Reconciliation of Earnings (Loss) per Share to Adjusted Earnings per Share (Three Months Ended) | Metric | August 30, 2025 | August 31, 2024 | | :------------------------------------------ | :-------------- | :-------------- | | Earnings (loss) per share - diluted | $0.29 | $(0.02) | | Add: Amortization of Knoll purchased intangibles | 0.09 | 0.08 | | Add: Integration charges | — | 0.40 | | Add: Restructuring charges | 0.01 | — | | Add: Debt extinguishment charges | 0.11 | — | | Add: Knoll pension plan termination charges | — | 0.01 | | Tax impact on adjustments | (0.05) | (0.11) | | Adjusted earnings per share - diluted | $0.45 | $0.36 | | Weighted average shares outstanding (used for calculating adjusted earnings per share) – diluted | 69,194,506 | 70,206,373 | [Gross Margin to Adjusted Gross Margin](index=12&type=section&id=Gross%20Margin%20to%20Adjusted%20Gross%20Margin) This reconciliation illustrates the adjustment from GAAP gross margin to adjusted gross margin, accounting for integration charges Reconciliation of Gross Margin to Adjusted Gross Margin (Three Months Ended, Dollars in millions) | Metric | August 30, 2025 | % | August 31, 2024 | % | | :------------------ | :-------------- | :----- | :-------------- | :----- | | Gross margin | $368.1 | 38.5 % | $336.3 | 39.0 % | | Integration charges | — | — % | 0.5 | 0.1 % | | Adjusted gross margin | $368.1 | 38.5 % | $336.8 | 39.1 % | [Operating Expenses to Adjusted Operating Expenses & Adjusted Bank Covenant EBITDA](index=12&type=section&id=Operating%20Expenses%20to%20Adjusted%20Operating%20Expenses%20%26%20Adjusted%20Bank%20Covenant%20EBITDA) This section reconciles operating expenses to adjusted operating expenses and presents the calculation of Adjusted Bank Covenant EBITDA and its ratio Reconciliation of Operating Expenses to Adjusted Operating Expenses (Three Months Ended, Dollars in millions) | Metric | August 30, 2025 | % | August 31, 2024 | % | | :------------------------------------------ | :-------------- | :----- | :-------------- | :----- | | Operating expenses | $314.6 | 32.9 % | $321.1 | 37.3 % | | Restructuring charges | 0.5 | 0.1 % | — | — % | | Integration charges | — | — % | 27.8 | 3.2 % | | Amortization of Knoll purchased intangibles | 6.1 | 0.6 % | 5.9 | 0.7 % | | Knoll pension plan termination charges | — | — % | 0.5 | 0.1 % | | Adjusted operating expenses | $308.0 | 32.2 % | $286.9 | 33.3 % | Reconciliation of Net Loss to Adjusted Bank Covenant EBITDA and Adjusted Bank Covenant EBITDA Ratio (Trailing Twelve Month Basis, Dollars in millions) | Metric | August 30, 2025 | | :-------------------------------------- | :-------------- | | Net loss | $(15.6) | | Income tax expense | 20.3 | | Depreciation expense | 102.9 | | Amortization expense | 38.5 | | Interest expense | 75.2 | | (*) Other adjustments | 183.7 | | Adjusted bank covenant EBITDA | $405.0 | | Total debt, less cash, end of trailing period | $1,184.5 | | Net debt to adjusted bank covenant EBITDA ratio | 2.92 | [Organic Sales Growth by Segment](index=14&type=section&id=Organic%20Sales%20Growth%20by%20Segment) This table presents organic sales growth for each segment and consolidated MillerKnoll, adjusted for currency translation effects Organic Sales Growth by Segment (Three Months Ended August 30, 2025, Dollars in millions) | Metric | North America Contract | International Contract | Global Retail | Total | | :---------------------- | :--------------------- | :--------------------- | :------------ | :------ | | Net sales, as reported | $533.9 | $167.5 | $254.3 | $955.7 | | % change from PY | 12.1 % | 14.4 % | 6.4 % | 10.9 % | | Adjustments | | | | | | (1) Currency translation effects | (0.1) | (4.6) | (3.6) | (8.3) | | Net sales, organic | $533.8 | $162.9 | $250.7 | $947.4 | | % change from PY | 12.1 % | 11.3 % | 4.9 % | 10.0 % | [Organic Order Growth by Segment](index=14&type=section&id=Organic%20Order%20Growth%20by%20Segment) This table details organic order growth for each segment and consolidated MillerKnoll, adjusted for currency translation effects Organic Order Growth by Segment (Three Months Ended August 30, 2025, Dollars in millions) | Metric | North America Contract | International Contract | Global Retail | Total | | :---------------------- | :--------------------- | :--------------------- | :------------ | :------ | | Orders, as reported | $492.2 | $154.5 | $238.7 | $885.4 | | % change from PY | (8.2)% | (6.5)% | 1.7 % | (5.4)% | | Adjustments | | | | | | (1) Currency translation effects | (0.1) | (4.5) | (3.3) | (7.9) | | Orders, organic | $492.1 | $150.0 | $235.4 | $877.5 | | % change from PY | (8.2)% | (9.2)% | 0.3 % | (6.2)% | [Effective Tax Rate to Adjusted Effective Tax Rate](index=15&type=section&id=Effective%20Tax%20Rate%20to%20Adjusted%20Effective%20Tax%20Rate) This reconciliation shows adjustments from the GAAP effective tax rate to the adjusted effective tax rate, accounting for non-GAAP impacts Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate (Three Months Ended, Dollars in millions) | Metric | August 30, 2025 | August 31, 2024 | | :------------------------------------------ | :-------------- | :-------------- | | Income tax expense (benefit), as reported (GAAP) | $7.6 | $(1.1) |\ | Effective Tax Rate | 26.5 % | 66.2 % | | Adjustments | | | | Restructuring charges | $0.1 | — | | Integration charges | — | 6.7 | | Amortization of Knoll purchased intangibles | 1.5 | 1.4 | | Knoll pension plan termination charges | — | 0.1 | | Debt extinguishment charges | 2.0 | — | | Income tax expense (benefit), adjusted | $11.2 | $7.1 | | * Adjusted Effective Tax Rate | 26.0 % | 21.5 % | [Consolidated Backlog](index=15&type=section&id=Consolidated%20Backlog) MillerKnoll's consolidated backlog decreased to $690.9 million in Q1 FY2026 from $758.0 million in Q1 FY2025 Consolidated MillerKnoll Backlog (Dollars in millions) | Metric | Q1 FY2026 | Q1 FY2025 | | :---------------- | :-------- | :-------- | | MillerKnoll backlog | $690.9 | $758.0 | [Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of MillerKnoll, its brands, forward-looking statements, risk factors, and webcast information [About MillerKnoll](index=16&type=section&id=About%20MillerKnoll) MillerKnoll is a collective of dynamic brands focused on designing and building a sustainable, equitable, and beautiful future - MillerKnoll is a collective of dynamic brands, including Herman Miller, Knoll, Colebrook Bosson Saunders, DatesWeiser, Design Within Reach, Edelman, Geiger, HAY, Holly Hunt, Knoll Textiles, Maharam, Muuto, NaughtOne, and Spinneybeck|FilzFelt[43](index=43&type=chunk) - The company aims to redefine modern for the 21st century by building a more sustainable, equitable, and beautiful future[43](index=43&type=chunk) [Forward-Looking Statements and Risk Factors](index=16&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines forward-looking statements and key risk factors, including trade policies, growth strategy, economic conditions, and cybersecurity threats - The communication includes forward-looking statements about future events, anticipated results, market conditions, business strategies, and risks[44](index=44&type=chunk) - Actual results could differ materially due to various risks and uncertainties, many beyond the company's control[44](index=44&type=chunk) - Key risk factors include changes to U.S. and international trade policies (tariffs), challenges in implementing growth strategy, consumer spending levels, global and national economic conditions (inflation, interest rates, geopolitical tensions), cybersecurity threats, public health crises, risks related to Knoll acquisition debt, availability and pricing of raw materials, financial strength of dealers/customers, pace of government procurement, and outcome of litigation/audits[46](index=46&type=chunk) [Webcast and Conference Call Information](index=3&type=section&id=Webcast%20and%20Conference%20Call%20Information) MillerKnoll hosted a conference call and webcast on September 23, 2025, to discuss Q1 FY2026 results, with an online archive available - Conference call and webcast held on Tuesday, September 23, 2025, at 5:00 PM ET to discuss Q1 FY2026 results[12](index=12&type=chunk) - Details and online archive available on the company's investor relations website: https://www.millerknoll.com/investor-relations/news-events/events-and-presentations[12](index=12&type=chunk)

Group 1 - MillerKnoll Inc. reported its first quarter fiscal 2026 results, ending August 30, 2025 [1] - The company is identified as a growth-oriented small-cap value company operating in the industrial and consumer sectors [1]

Core Insights - The article discusses the performance and strategic developments of MillerKnoll, Inc. (NASDAQ: MLKN) since the merger of Herman Miller and Knoll in spring 2021 [1]. Group 1: Company Overview - MillerKnoll, Inc. is a result of the merger between Herman Miller and Knoll, which was announced in spring 2021 [1]. - The investing group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports [1]. Group 2: Investment Opportunities - The service provides coverage of 10 major events each month, aiming to find the best investment opportunities for its members [1].

Leadership Changes - MillerKnoll announced the appointment of John Hoke as Board Chair, effective October 13, 2025, following Mike Volkema's retirement after 25 years on the Board [1][2] - Jeff Stutz has been named Chief Operating Officer, effective September 8, 2025, continuing to report to Andi Owen, President and CEO [1][3] Leadership Background - John Hoke has been on the MillerKnoll Board since 2005 and has over 30 years of experience at Nike Inc., where he served as Chief Innovation Officer [2][3] - Jeff Stutz has been with the company since 2001, previously serving as Chief Financial Officer and has played a key role in navigating macroeconomic challenges [3][4] Responsibilities and Focus Areas - In his new role, Stutz will oversee MillerKnoll's International Contract Business, global manufacturing and distribution operations, and Europe-based brands [4] - Stutz aims to grow the International Contract and Group brands through the dealer ecosystem and optimize manufacturing operations globally [4][5] Company Overview - MillerKnoll is a collective of design brands, including Herman Miller and Knoll, focusing on furniture and accessories for commercial and residential spaces [6] - The company generated net sales of $3.7 billion in fiscal year 2025 [6]

Company Overview - MillerKnoll, Inc. is a growth-oriented small-cap value company operating in the industrial and consumer sectors, formed from the merger of two modern design icons, Herman Miller and Knoll [5] - The company offers a diverse portfolio of furniture and accessories for both commercial and residential spaces, including brands like Colebrook Bosson Saunders, DatesWeiser, DWR, Edelman, Geiger, HAY, HOLLY HUNT, Knoll Textiles, Maharam, Muuto, NaughtOne, and Spinneybeck | FilzFelt [5] - In fiscal year 2025, MillerKnoll generated net sales of $3.7 billion [5] Upcoming Financial Results - MillerKnoll will release its first quarter fiscal 2026 results on September 23, 2025, after market close [1] - A conference call and webcast to discuss the financial and operational results will take place at 5:00 p.m. Eastern time on the same day [1][3] - Investors can access the press release and supporting materials on the company's investor relations website [2]

Part I [Business Overview](index=3&type=section&id=Item%201%20Business) MillerKnoll, Inc. is a global leader in designing, manufacturing, and distributing interior furnishings for various environments, operating through three reportable segments - MillerKnoll operates through three reportable segments: North America Contract, International Contract, and Global Retail, with a corporate category for unallocated expenses[12](index=12&type=chunk) - The company's principal business involves research, design, manufacture, selling, and distribution of seating products, furniture systems, other freestanding furniture, textiles, leather, felt, home furnishings, and related services[13](index=13&type=chunk) - Approximately **53.7% of the Company's sales** in fiscal year ended May 31, 2025, were made directly through independent dealers, with the remainder through direct sales to end-users, retail channels, or independent retailers[16](index=16&type=chunk) Research, Design and Development Expenses (Fiscal Years 2023-2025) | Fiscal Year | Expense (Millions USD) | | :---------- | :--------------------- | | 2025 | $60.7 | | 2024 | $62.0 | | 2023 | $67.6 | - The company had approximately **10,382 employees** as of May 31, 2025, with about **2% covered by collective bargaining agreements**, primarily in the United Kingdom, Italy, and Brazil[32](index=32&type=chunk)[31](index=31&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A%20Risk%20Factors) The company faces various risks including challenges in implementing its growth strategy, increased indebtedness from the Knoll acquisition, and adverse macroeconomic conditions affecting customer demand - The company's consolidated long-term debt was **$1.31 billion** as of May 31, 2025, primarily due to the Knoll acquisition in July 2021, increasing interest expense and potentially reducing business flexibility[47](index=47&type=chunk) - Sales to the U.S. federal government represented approximately **4% of total Company net sales** in fiscal year 2025, making the business susceptible to changes in government spending policies[60](index=60&type=chunk) - Purchases of direct materials from China represented an estimated **3% of consolidated cost of sales** for fiscal 2025, limiting the direct impact of tariffs on Chinese imports but steel costs remain sensitive to trade tensions[63](index=63&type=chunk) - The company recognized a total non-cash impairment charge of **$30.1 million** and **$62.2 million** in its Global Retail and Holly Hunt reporting units, respectively, during the third quarter of fiscal year 2025, primarily due to reduced sales and profitability projections and an increased discount rate[223](index=223&type=chunk) - During the third quarter of fiscal year 2025, the company recognized **$37.7 million in non-cash impairment charges** related to the Knoll and Muuto trade names due to indicators of impairment[232](index=232&type=chunk) [Unresolved Staff Comments](index=14&type=section&id=Item%201B%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report [Cybersecurity](index=14&type=section&id=Item%201C%20Cybersecurity) MillerKnoll employs a comprehensive cybersecurity risk management program, overseen by its Board of Directors, CTO, and CISO - The Board of Directors, Chief Technology Officer (CTO), and Chief Information Security Officer (CISO) are actively involved in the oversight of MillerKnoll's cybersecurity risk management program[91](index=91&type=chunk) - The company identifies and assesses cybersecurity risks through monitoring threat environments, analyzing threat reports, conducting scans, and utilizing internal and external audits and vulnerability assessments[92](index=92&type=chunk) - Key mitigation measures include incident detection and response, vulnerability management, disaster recovery plans, data encryption, network security controls, access controls, physical security, asset management, systems monitoring, vendor risk management, and employee training[97](index=97&type=chunk) - To date, no risks from cybersecurity threats have materially affected the Company, and management does not believe any such material effect is reasonably likely[94](index=94&type=chunk) [Properties](index=17&type=section&id=Item%202%20Properties) MillerKnoll owns or leases numerous facilities globally for manufacturing, warehousing, offices, and retail, which are considered adequate for current and future operational needs Significant Owned Locations (May 31, 2025) | Location | Square Footage (in Thousands) | Use | | :------------------------ | :---------------------------- | :------------------------- | | Zeeland, Michigan | 771 | Manufacturing, Warehouse, Office | | East Greenville, Pennsylvania | 735 | Manufacturing, Warehouse, Office | | Spring Lake, Michigan | 615 | Manufacturing, Warehouse, Office | | North York, Canada | 386 | Manufacturing, Warehouse, Office | | Muskegon, Michigan | 367 | Manufacturing, Office | | Holland, Michigan | 357 | Warehouse | | Holland, Michigan | 293 | Manufacturing, Office | | Foligno, Italy | 260 | Manufacturing, Warehouse, Office | | Holland, Michigan | 242 | Office, Design | | Melksham, United Kingdom | 170 | Manufacturing, Warehouse, Office | | Graffignana, Italy | 108 | Manufacturing, Warehouse, Office | Significant Leased Locations (May 31, 2025) | Location | Square Footage (in Thousands) | Use | | :------------------------ | :---------------------------- | :-------- | | Alburtis, Pennsylvania | 718 | Warehouse | | Batavia, Ohio | 618 | Warehouse | | Dongguan, China | 423 | Manufacturing, Office | | Ringsted, Denmark | 274 | Warehouse | | La Grange Highlands, Illinois | 210 | Warehouse | | Atlanta, Georgia | 180 | Manufacturing | | Buffalo, New York | 128 | Manufacturing | | New York City, New York | 112 | Showroom | - As of May 31, 2025, the Company operated **75 retail stores** (including 38 DWR, 1 HAY, 30 Herman Miller, 3 Muuto, 2 Knoll, and a multi-brand Chicago store) totaling approximately **506,811 square feet of selling space**, plus 3 retail outlet stores[99](index=99&type=chunk) [Legal Proceedings](index=17&type=section&id=Item%203%20Legal%20Proceedings) MillerKnoll is involved in routine legal proceedings and litigation, but management believes the outcomes will not materially affect the company's consolidated operations, cash flows, or financial condition - Management believes the outcome of current legal proceedings and litigation will not materially affect the Company's consolidated operations, cash flows, or financial condition[101](index=101&type=chunk) [Additional Item: Executive Officers of the Registrant](index=18&type=section&id=Additional%20Item%3A%20Executive%20Officers%20of%20the%20Registrant) This section lists the executive officers of MillerKnoll, Inc. as of May 31, 2025, including their positions and ages Executive Officers of MillerKnoll, Inc. (May 31, 2025) | Name | Position | Age | | :---------------- | :---------------------------------------- | :-- | | Andrea R. Owen | President and Chief Executive Officer | 60 | | Jeffrey M. Stutz | Chief Financial Officer | 54 | | Chris Baldwin | Group President, MillerKnoll | 52 | | Megan Lyon | Chief Strategy and Technology Officer | 45 | | John Michael | President, North America Contract | 63 | | Debbie Propst | President, Global Retail | 44 | | Jacqueline H. Rice| Chief Legal Officer and Corporate Secretary | 53 | | B. Ben Watson | Chief Creative and Product Officer | 60 | [Mine Safety Disclosures](index=18&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable to MillerKnoll, Inc Part II [Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=19&type=section&id=Item%205%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) MillerKnoll's common stock trades on the Nasdaq Global Select Market (MLKN), with approximately 32,000 shareholders, and the company maintains a quarterly cash dividend and a share repurchase plan - MillerKnoll's common stock is traded on the Nasdaq Global Select Market System under the symbol **MLKN**[107](index=107&type=chunk) - As of July 18, 2025, there were approximately **32,000 shareholders of record** for the Company's common stock[107](index=107&type=chunk) - The Board of Directors approved a quarterly cash dividend of **$0.1875 per share** on April 15, 2025, paid on July 15, 2025[108](index=108&type=chunk) Share Repurchase Activity (Fiscal Quarter Ended May 31, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :-------------- | :------------------------------- | :--------------------------- | | 3/2/25-3/29/25 | 2,948 | $21.50 | | 3/30/25-4/26/25 | 2,198 | $18.03 | | 4/27/25-5/31/25 | — | $— | | Total | 5,146 | | - As of May 31, 2025, **$181.4 million remained available** for purchase under the share repurchase plan, which was increased by an additional **$200.0 million** on July 16, 2024[110](index=110&type=chunk)[111](index=111&type=chunk) - Fiscal year 2025 share repurchases in excess of issuances are subject to a **1% excise tax** under the Inflation Reduction Act of 2022[114](index=114&type=chunk) [Reserved](index=19&type=section&id=Item%206%20%5BReserved%5D) This item is reserved and not applicable [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%207%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MillerKnoll's fiscal year 2025 saw a slight increase in net sales, driven by contract segments and pricing actions, despite declines in Global Retail and unfavorable currency impacts Key Financial Highlights (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 (Millions USD) | Fiscal 2024 (Millions USD) | % Change | | :------------------------- | :------------------------- | :------------------------- | :------- | | Net sales | $3,669.9 | $3,628.4 | 1.1% | | Gross margin | $1,422.6 | $1,419.5 | 0.2% | | Gross margin % | 38.8% | 39.1% | (0.3)% | | Operating expenses | $1,372.1 | $1,252.3 | 9.6% | | Operating earnings | $50.5 | $167.2 | (69.8)% | | Diluted (Loss) Earnings per Share | $(0.54) | $1.11 | (148.6)% | | Adjusted Diluted Earnings per Share | $1.95 | $2.08 | (6.3)% | - Net sales increased by **$42 million (1.1%)** in fiscal 2025, primarily driven by increased sales volume in North America Contract and International Contract segments, and net price increases, partially offset by the closure of the HAY eCommerce channel and decreased Global Retail sales volume[157](index=157&type=chunk) - Gross margin declined by **30 basis points to 38.8%** in fiscal 2025, mainly due to increased material costs (including tariffs) and unfavorable channel/product mix, partially offset by effective pricing strategies[157](index=157&type=chunk) - Operating expenses increased by **$120 million (9.6%)** in fiscal 2025, primarily due to a **$113 million increase in non-cash intangible impairment charges**[161](index=161&type=chunk) Segment Net Sales and Operating Earnings (Fiscal 2025 vs. 2024) | Segment | Net Sales 2025 (Millions USD) | Net Sales 2024 (Millions USD) | % Change | Operating Earnings 2025 (Millions USD) | Operating Earnings 2024 (Millions USD) | % Change | | :----------------------- | :---------------------------- | :---------------------------- | :------- | :------------------------------------- | :------------------------------------- | :------- | | North America Contract | $1,965.2 | $1,922.3 | 2.2% | $120.9 | $106.7 | 13.3% | | International Contract | $660.0 | $645.6 | 2.2% | $63.3 | $61.6 | 2.8% | | Global Retail | $1,044.7 | $1,060.5 | (1.5)% | $(66.0) | $51.0 | (229.4)% | | Corporate | N/A | N/A | N/A | $(67.7) | $(52.1) | 30.0% | [Executive Overview](index=22&type=section&id=Executive%20Overview) MillerKnoll is a global design collective creating interior furnishings for various environments, emphasizing lean manufacturing and a multi-channel distribution strategy, with a focus on scaling its Global Retail business - MillerKnoll is a collective of dynamic design brands focused on creating positive impact through interior furnishings for residential, office, healthcare, and educational settings globally[121](index=121&type=chunk)[122](index=122&type=chunk) - The company's manufacturing strategy emphasizes lean manufacturing (MillerKnoll Performance System - MKPS) and limiting fixed production costs by sourcing component parts from strategic suppliers, resulting in assembly-based operations and high inventory turns[123](index=123&type=chunk)[124](index=124&type=chunk) - A key growth strategy is to scale the Global Retail business through Herman Miller and Design Within Reach (DWR) channels, offering iconic and design-centric products from various brands to retail customers[125](index=125&type=chunk) - The company's reportable segments are North America Contract, International Contract, and Global Retail, with a corporate category for unallocated expenses[126](index=126&type=chunk)[127](index=127&type=chunk) [Core Strengths](index=23&type=section&id=Core%20Strengths) MillerKnoll's core strengths include a diverse product portfolio, design leadership, a unique multi-channel business model, global scale, and a highly engaged workforce - **Product Portfolio and Brand Collective:** MillerKnoll encompasses globally recognized design brands like Herman Miller and Knoll, leveraging over 100 years of design research to connect with new audiences and categories[128](index=128&type=chunk) - **Design Leadership:** Commitment to research-based functionality and aesthetically innovative new products, collaborating with a global network of independent designers[128](index=128&type=chunk) - **Unique Business Model:** Multi-channel distribution capability (contract furniture dealers, direct sales, retail stores, eCommerce) and lean manufacturing (MKPS) for efficiency and quality[128](index=128&type=chunk) - **Global Scale and Reach:** Global network of designers, suppliers, manufacturing operations, and R&D centers to serve contract and residential customers worldwide[128](index=128&type=chunk) - **Extraordinary People:** Focus on identifying, hiring, developing, motivating, and retaining employees as a critical success factor[128](index=128&type=chunk) [Channels of Distribution](index=23&type=section&id=Channels%20of%20Distribution) MillerKnoll distributes products through independent contract furniture dealers, direct sales, eCommerce, wholesale, and owned retail locations, including 75 retail studios - **Independent Contract Furniture Dealers:** Most product sales are made to a global network of independently owned and operated dealerships, which also offer furniture-related services[128](index=128&type=chunk) - **Direct Contract Sales:** Products and services are sold directly to end customers (e.g., U.S. federal government) without an intermediary, often contracting separately for installation services[128](index=128&type=chunk) - **eCommerce:** Global sales through localized Herman Miller, Knoll, and DWR websites, complementing existing distribution and extending brand reach[129](index=129&type=chunk) - **Wholesale:** Certain products are sold on a wholesale basis to independent retailers globally through the Global Retail segment[129](index=129&type=chunk) - **Retail Locations:** As of May 31, 2025, the Company operated **75 retail studios** (DWR, HAY, Herman Miller, Muuto, Knoll, multi-brand Chicago store) and 3 outlet studios[129](index=129&type=chunk) [Challenges Ahead](index=24&type=section&id=Challenges%20Ahead) The company acknowledges specific business and industry risks, referring to Item 1A for detailed risk factors and Item 7A for market risk disclosures - The Company acknowledges specific business and industry risks, referring to Item 1A for risk factors and Item 7A for market risk disclosures[130](index=130&type=chunk) [Areas of Strategic Focus](index=24&type=section&id=Areas%20of%20Strategic%20Focus) MillerKnoll's strategic focus areas include driving customer demand through showroom expansion and online tools, fostering engaged associates, and delivering shareholder value by capitalizing on growth opportunities and product innovation - **Drive Customer Demand and Order Growth:** Prioritizing world-class client experiences, investing in MillerKnoll showrooms in key markets (Atlanta, Chicago, Dallas, London, Los Angeles, New York, Toronto, San Francisco), expanding DWR studios and Herman Miller stores in North America, and launching new online tools for trade customers[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - **Foster a Culture of Highly Engaged Associates:** Nurturing talent through a global HR technology platform, competitive compensation and benefits, development opportunities, and investing to be an employer of choice[134](index=134&type=chunk)[135](index=135&type=chunk) - **Deliver Value to our Associates and Shareholders:** Capitalizing on growth opportunities across business segments, leveraging global operations, leading in product innovation, design excellence, and sustainability, fortifying flagship brands, driving growth in North America and International Contract, and transforming Global Retail[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) [Business Overview](index=26&type=section&id=Business%20Overview) Fiscal 2025 saw slight net sales growth for MillerKnoll amidst macroeconomic challenges, with contract segments performing better than Global Retail, and the company focusing on cost management and strategic investments Fiscal Year 2025 Financial Summary | Metric | Fiscal 2025 (Millions USD) | Fiscal 2024 (Millions USD) | % Change | | :----------------------------------- | :------------------------- | :------------------------- | :------- | | Net sales | $3,669.9 | $3,628.4 | 1.1% | | Gross margin | 38.8% | 39.1% | (0.3)% | | Operating expenses | $1,372.1 | $1,252.3 | 9.6% | | Effective tax rate | (53.1)% | 14.8% | (458.8)% | | Diluted loss per share | $(0.54) | $1.11 | (148.6)% | | Adjusted diluted earnings per share | $1.95 | $2.08 | (6.3)% | | Cash dividends per share | $0.75 | $0.75 | 0.0% | - The global macroeconomic environment, characterized by higher interest rates, tepid housing demand, low confidence levels, and geopolitical uncertainty, continues to challenge the industry[141](index=141&type=chunk) - The company is focused on prudent cost management and investment in targeted growth opportunities, including Global Retail expansion and product design/innovation in contract segments[141](index=141&type=chunk) - Changes in trade policies and commodity costs (tariffs) have increased cost pressures, which the company aims to offset with pricing actions and mitigation strategies[141](index=141&type=chunk) Segment Performance Highlights (Fiscal 2025 vs. 2024) | Segment | Net Sales Change (YoY) | Organic Sales Change (YoY) | Operating Margin Change (YoY) | Adjusted Operating Margin Change (YoY) | | :----------------------- | :--------------------- | :------------------------- | :---------------------------- | :------------------------------------- | | North America Contract | +2.2% | +2.4% | +60 bps | +50 bps | | International Contract | +2.2% | +2.7% | +10 bps | -10 bps | | Global Retail | -1.5% | -0.3% | -1,110 bps | -110 bps | [Reconciliation of Non-GAAP Financial Measures](index=27&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) MillerKnoll uses non-GAAP measures like Adjusted EPS and Organic Growth to provide a clearer view of financial performance by excluding non-recurring or non-operational items - Non-GAAP financial measures, such as Adjusted Earnings per Share, Adjusted Operating Earnings (Loss), Adjusted Operating Margin, and Organic Growth (Decline), are used to provide a more comparative basis for financial performance, excluding specific non-recurring or non-operational items[142](index=142&type=chunk)[143](index=143&type=chunk) - **Adjusted Earnings per Share:** Excludes amortization of Knoll purchased intangibles, integration charges, restructuring expenses, impairment charges, Knoll pension plan termination charges, and related tax effects[144](index=144&type=chunk) - **Adjusted Operating Earnings (Loss):** Adds back integration charges, amortization of Knoll purchased intangibles, restructuring expenses, impairment charges, and Knoll pension plan termination charges to reported operating earnings[145](index=145&type=chunk)[146](index=146&type=chunk) - **Organic Growth (Decline):** Represents changes in sales and orders, excluding currency translation effects and the impact of the closure of the North America HAY eCommerce channel[147](index=147&type=chunk) Adjusted Operating Earnings by Segment (Fiscal 2025 vs. 2024) | Segment | Adjusted Operating Earnings 2025 (Millions USD) | Adjusted Operating Earnings 2024 (Millions USD) | | :----------------------- | :-------------------------------------------- | :-------------------------------------------- | | North America Contract | $191.0 | $177.2 | | International Contract | $73.5 | $72.4 | | Global Retail | $51.9 | $64.6 | | Corporate | $(67.7) | $(52.0) | | **MillerKnoll, Inc. Total** | **$248.7** | **$262.2** | Organic Net Sales by Segment (Fiscal 2025 vs. 2024) | Segment | Net Sales 2025 (Millions USD) | Organic Net Sales 2025 (Millions USD) | % Change from PY (Organic) | | :----------------------- | :---------------------------- | :------------------------------------ | :------------------------- | | North America Contract | $1,965.2 | $1,967.6 | 2.4% | | International Contract | $660.0 | $663.1 | 2.7% | | Global Retail | $1,044.7 | $1,045.4 | (0.3)% | | **Total** | **$3,669.9** | **$3,676.1** | **1.6%** | Organic Orders by Segment (Fiscal 2025 vs. 2024) | Segment | Orders 2025 (Millions USD) | Organic Orders 2025 (Millions USD) | % Change from PY (Organic) | | :----------------------- | :------------------------- | :--------------------------------- | :------------------------- | | North America Contract | $2,021.0 | $2,023.3 | 6.3% | | International Contract | $665.9 | $671.4 | 0.6% | | Global Retail | $1,060.8 | $1,061.9 | 2.2% | | **Total** | **$3,747.7** | **$3,756.6** | **4.1%** | EPS to Adjusted EPS Reconciliation (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 | Fiscal 2024 | | :------------------------------------------------------------------ | :---------- | :---------- | | (Loss) Earnings per Share - Diluted | $(0.54) | $1.11 | | Add: Amortization of Knoll purchased intangibles | $0.35 | $0.32 | | Add: Integration charges | $0.41 | $0.31 | | Add: Restructuring charges | $0.22 | $0.42 | | Add: Impairment charges | $1.88 | $0.24 | | Add: Knoll pension plan termination charges | $0.01 | — | | Tax impact on adjustments | $(0.38) | $(0.32) | | **Adjusted earnings per share - diluted** | **$1.95** | **$2.08** | [Financial Results](index=33&type=section&id=Financial%20Results) MillerKnoll's fiscal 2025 saw a slight net sales increase but a significant decline in operating earnings and net earnings, primarily due to higher operating expenses from intangible impairment charges and increased other expenses Consolidated Statements of Comprehensive Income Summary (Fiscal 2025 vs. 2024) | (Dollars in millions) | Fiscal 2025 | Fiscal 2024 | % Change | | :-------------------------------------------------- | :---------- | :---------- | :------- | | Net sales | $3,669.9 | $3,628.4 | 1.1% | | Cost of sales | $2,247.3 | $2,208.9 | 1.7% | | Gross margin | $1,422.6 | $1,419.5 | 0.2% | | Operating expenses | $1,372.1 | $1,252.3 | 9.6% | | Operating earnings | $50.5 | $167.2 | (69.8)% | | Other expenses, net | $72.4 | $67.5 | 7.3% | | Earnings before income taxes and equity income | $(21.9) | $99.7 | (122.0)% | | Income tax expense | $11.6 | $14.7 | (21.1)% | | Equity income (loss) from nonconsolidated affiliates, net of tax | $0.3 | $(0.4) | (175.0)% | | Net earnings | $(33.2) | $84.6 | (139.2)% | | Net earnings attributable to MillerKnoll, Inc. | $(36.9) | $82.3 | (144.8)% | - Net sales increased by **$42 million (1.1%)** in fiscal 2025, driven by increased sales volume in International Contract (**$28 million**) and North America Contract (**$25 million**), and net price increases (**$14 million**)[157](index=157&type=chunk) - Offsetting factors included a **$12 million reduction** from the HAY eCommerce channel closure, a **$7 million decrease** in Global Retail sales volume, and an unfavorable foreign currency impact of **$6 million**[157](index=157&type=chunk) - Gross margin declined by **30 basis points to 38.8%** in fiscal 2025, primarily due to tariff-related costs (**30 bps**) and unfavorable channel/product mix (**30 bps**), partially offset by effective pricing strategies (**30 bps**)[157](index=157&type=chunk) - Operating expenses increased by **$120 million (9.6%)**, mainly due to a **$113 million increase in non-cash intangible impairment charges**, **$10 million higher selling and marketing expenses** in Global Retail, and **$7 million higher variable selling costs**. This was partially offset by a **$16 million reduction in restructuring charges**[161](index=161&type=chunk) - Net other expenses increased by **$4.9 million to $72.4 million**, primarily due to a **$2.3 million reduction in net periodic benefit income** from the Knoll pension plan termination and a **$3.1 million increase in foreign currency losses**[162](index=162&type=chunk) [Operating Segments Results](index=36&type=section&id=Operating%20Segments%20Results) MillerKnoll reorganized into three segments: North America Contract and International Contract showed sales and operating earnings growth, while Global Retail experienced sales decline and a significant operating loss due to impairment charges - Effective March 1, 2025, the company implemented an organizational change, resulting in three reportable segments: North America Contract, International Contract, and Global Retail. Historical results have been recast to reflect this change[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) - The Chief Executive Officer (CODM) uses Adjusted Operating Earnings (Loss) as the key metric to measure segment profit or loss, evaluate performance, analyze variances, and allocate resources[479](index=479&type=chunk)[480](index=480&type=chunk) North America Contract Segment Performance (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 (Millions USD) | Fiscal 2024 (Millions USD) | Change (Millions USD) | | :----------------- | :------------------------- | :------------------------- | :-------------------- | | Net sales | $1,965.2 | $1,922.3 | $42.9 | | Gross margin | $702.3 | $697.8 | $4.5 | | Gross margin % | 35.7% | 36.3% | (0.6)% | | Operating earnings | $120.9 | $106.7 | $14.2 | | Operating earnings % | 6.2% | 5.6% | 0.6% | - North America Contract net sales increased **2.2% (2.4% organic)** due to increased sales volume (**$25 million**) and price increases (**$20 million**), partially offset by unfavorable foreign currency translation (**$2 million**)[173](index=173&type=chunk) - Operating earnings increased **$14.2 million (13.3%)**, driven by decreased operating expenses (**$9.7 million**, mainly from reduced restructuring charges and incentive compensation) and higher gross margin (**$4.5 million**)[174](index=174&type=chunk) - Gross margin percentage declined by **60 basis points** due to unfavorable product mix (**40 bps**), higher tariff-related costs (**30 bps**), and increased commodity/distribution costs (**30 bps**), partially offset by incremental list price increases (**70 bps**)[174](index=174&type=chunk) International Contract Segment Performance (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 (Millions USD) | Fiscal 2024 (Millions USD) | Change (Millions USD) | | :----------------- | :------------------------- | :------------------------- | :-------------------- | | Net sales | $660.0 | $645.6 | $14.4 | | Gross margin | $240.8 | $233.1 | $7.7 | | Gross margin % | 36.5% | 36.1% | 0.4% | | Operating earnings | $63.3 | $61.6 | $1.7 | | Operating earnings % | 9.6% | 9.5% | 0.1% | - International Contract net sales increased **2.2% (2.7% organic)** due to increased sales volume (**$28 million**), partially offset by incremental discounting (**$11 million**) and unfavorable foreign currency translation (**$3 million**)[176](index=176&type=chunk) - Operating earnings increased **$1.7 million (2.8%)**, driven by increased gross margin (**$7.7 million**) due to higher sales volume and a **40 basis point increase in gross margin percentage**[180](index=180&type=chunk) - Gross margin percentage improved due to leverage on fixed costs (**70 bps**) and favorable product/business mix (**60 bps**), partially offset by incremental discounting (**90 bps**). Increased operating expenses (**$6 million**) partially offset the gross margin increase[180](index=180&type=chunk) Global Retail Segment Performance (Fiscal 2025 vs. 2024) | Metric | Fiscal 2025 (Millions USD) | Fiscal 2024 (Millions USD) | Change (Millions USD) | | :----------------- | :------------------------- | :------------------------- | :-------------------- | | Net sales | $1,044.7 | $1,060.5 | $(15.8) |\ | Gross margin | $479.5 | $488.6 | $(9.1) |\ | Gross margin % | 45.9% | 46.1% | (0.2)% |\ | Operating (loss) earnings | $(66.0) | $51.0 | $(117.0) |\ | Operating (loss) earnings % | (6.3)% | 4.8% | (11.1)% | - Global Retail net sales decreased **1.5% (0.3% organic)** due to the closure of the HAY eCommerce channel (**$12 million**), decreased sales volumes (**$7 million**), and unfavorable foreign currency translation (**$1 million**), partially offset by price increases (**$4 million**)[178](index=178&type=chunk) - Operating earnings decreased **$117.0 million (229.4%)**, primarily due to a **$9.1 million decrease in gross margin** and a **$108 million increase in operating expenses**[181](index=181&type=chunk) - The gross margin percentage declined by **20 basis points**, mainly due to increased inventory costs (**110 bps**) and loss of fixed cost leverage (**30 bps**), partially offset by reduced freight/distribution costs and favorable product mix (**100 bps**) and incremental price increases (**20 bps**)[181](index=181&type=chunk) - Increased operating expenses were driven by a **$105 million increase in non-cash intangible impairment charges** and higher selling and marketing costs[181](index=181&type=chunk) - Corporate unallocated expenses increased by **$15.6 million to $67.7 million** in fiscal 2025, primarily due to higher stock-based compensation expense[183](index=183&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) MillerKnoll's net cash from operating activities decreased in fiscal 2025, while investing activities increased due to higher capital expenditures, and financing activities saw fewer share repurchases and debt refinancing Net Change in Cash and Cash Equivalents (Fiscal 2025 vs. 2024) | (In millions) | Fiscal Year Ended 2025 | Fiscal Year Ended 2024 | | :---------------------------- | :--------------------- | :--------------------- | | Operating activities | $209.3 | $352.3 | | Investing activities | $(100.9) | $(86.3) | | Financing activities | $(150.3) | $(258.8) | | Effect of exchange rate changes | $5.2 | $(0.3) | | **Net change** | **$(36.7)** | **$6.9** | - Net cash provided by operating activities decreased to **$209.3 million** in fiscal 2025 from **$352.3 million** in fiscal 2024, primarily due to a net increase in working capital[186](index=186&type=chunk) - Cash used in investing activities increased to **$100.9 million** in fiscal 2025 from **$86.3 million** in fiscal 2024, mainly due to increased capital expenditures, partially offset by proceeds from the sale of a manufacturing facility and a decrease in notes receivable advances[187](index=187&type=chunk) - Capital expenditures for fiscal 2025 were **$107.6 million**, up from **$78.4 million** in fiscal 2024. Expected capital spending for fiscal 2026 is **$120 million to $130 million**[189](index=189&type=chunk) - Cash used in financing activities decreased to **$150.3 million** in fiscal 2025 from **$258.8 million** in fiscal 2024, primarily due to fewer share repurchases and the refinancing of Term Loan A, partially offset by higher net payments on the credit agreement[190](index=190&type=chunk) - Total liquidity as of May 31, 2025, was **$575.9 million**, comprising **$193.7 million in cash and cash equivalents** and **$382.2 million in available revolving lines of credit**[193](index=193&type=chunk) [Contingencies](index=41&type=section&id=Contingencies) MillerKnoll is involved in routine legal proceedings, but management anticipates no material impact on the company's consolidated financial statements - The Company is involved in legal proceedings and litigation arising in the ordinary course of business, but management believes the outcome will not materially affect the Consolidated Financial Statements[201](index=201&type=chunk) [Basis of Presentation](index=42&type=section&id=Basis%20of%20Presentation) MillerKnoll's fiscal year ends on the Saturday closest to May 31, with fiscal years 2025 and 2024 having 52 weeks, and fiscal year 2023 having 53 weeks - The Company's fiscal year ends on the Saturday closest to May 31. Fiscal years 2025 and 2024 both contained 52 weeks, while fiscal year 2023 contained 53 weeks[202](index=202&type=chunk) [Contractual Obligations](index=42&type=section&id=Contractual%20Obligations) As of May 31, 2025, MillerKnoll's total contractual obligations amounted to $2.25 billion, primarily consisting of short-term borrowings, long-term debt, estimated interest, and operating lease payments Summary of Contractual Obligations (as of May 31, 2025) | (In millions) | Total | 2026 | 2027-2028 | 2029-2030 | Thereafter | | :---------------------------------- | :-------- | :----- | :-------- | :-------- | :--------- | | Short-term borrowings and long-term debt | $1,337.0 | $16.0 | $50.7 | $1,270.3 | $— | | Estimated interest on debt obligations | $242.3 | $59.7 | $125.3 | $57.3 | $— | | Operating leases | $597.5 | $88.0 | $183.4 | $146.4 | $179.7 | | Purchase obligations | $52.8 | $52.8 | $— | $— | $— | | Pension and other post employment benefit plans funding | $5.8 | $1.8 | $1.1 | $1.0 | $1.9 | | Stockholder dividends | $12.7 | $12.7 | $— | $— | $— | | Other | $4.6 | $0.5 | $0.9 | $0.8 | $2.4 | | **Total** | **$2,252.7**| **$231.5**| **$361.4** | **$1,475.8**| **$184.0** | [Critical Accounting Policies and Estimates](index=42&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) MillerKnoll's critical accounting policies involve significant estimates for business combinations, particularly fair value allocation and useful lives, and annual impairment assessments for goodwill and indefinite-lived intangibles, which are sensitive to market conditions and financial performance - **Business Combinations:** Requires significant estimates and assumptions at acquisition date for fair values of tangible and intangible assets, liabilities, and useful lives of acquired intangibles. Allocation of purchase consideration involves judgment, especially for intangible assets, and actual results may differ from estimates[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk) - **Goodwill and Indefinite-lived Intangibles:** Annual impairment assessment (March 31) or more frequent if indicators arise. Fair value determinations are sensitive to uncertainties and changes in estimates for revenue growth, operating margins, discount rates, and royalty rates. Declines in market conditions or financial performance could lead to impairment charges[214](index=214&type=chunk)[215](index=215&type=chunk) [Goodwill and Indefinite-lived Intangibles](index=43&type=section&id=Goodwill%20and%20Indefinite-lived%20Intangibles) MillerKnoll's goodwill and indefinite-lived intangibles balances decreased in fiscal 2025 due to significant non-cash impairment charges in Global Retail, Holly Hunt, Knoll, and Muuto, driven by revised projections and increased discount rates - Goodwill balance was **$1,152.4 million** as of May 31, 2025, down from **$1,226.3 million** at June 1, 2024[216](index=216&type=chunk) - During Q3 fiscal 2025, the company recognized non-cash goodwill impairment charges of **$30.1 million** in Global Retail and **$62.2 million** in Holly Hunt reporting units, primarily due to reduced sales/profitability projections and an increased discount rate[223](index=223&type=chunk) - Indefinite-lived intangible assets (trade names) had a carrying value of **$432.5 million** at May 31, 2025, down from **$465.5 million** at June 1, 2024[230](index=230&type=chunk) - During Q3 fiscal 2025, the company recognized **$37.7 million in non-cash impairment charges** related to the Knoll and Muuto trade names[232](index=232&type=chunk) - Sensitivity analysis for the Knoll trade name indicates that a **10% decrease in forecasted sales** would result in **$12.0 million of additional pre-tax impairment charges**, a **25 basis point decrease in royalty rate** would result in **$15.0 million**, and a **100 basis point increase in discount rate** would result in **$11.0 million**[234](index=234&type=chunk) [Long-lived Assets](index=46&type=section&id=Long-lived%20Assets) MillerKnoll evaluates long-lived assets for impairment when carrying amounts may not be recoverable, recording charges if carrying value exceeds fair value, as seen with right-of-use assets and the Fully asset group - The company evaluates long-lived assets for impairment when events or changes indicate that the carrying amount may not be recoverable. An impairment charge is recorded if the carrying value exceeds the estimated fair value[240](index=240&type=chunk) - In Q1 fiscal 2025, impairment charges of **$17.4 million** were recorded related to right-of-use assets for ceased leased locations[241](index=241&type=chunk) - In fiscal 2023, impairment of **$21.5 million** was recorded for certain long-lived assets within the Fully asset group due to the decision to cease operating Fully as a stand-alone brand[242](index=242&type=chunk) [New Accounting Standards](index=46&type=section&id=New%20Accounting%20Standards) MillerKnoll adopted ASU 2023-07 retrospectively for fiscal 2025, modifying segment disclosures without material financial impact, and anticipates similar non-material impacts from other upcoming ASUs - The company adopted ASU 2023-07, Segment Reporting, retrospectively for fiscal year ended May 31, 2025, which modified annual disclosures but did not materially affect financial position, results of operations, or cash flows[351](index=351&type=chunk) - ASU 2023-09 (Income Taxes) and ASU 2024-03 (Income Statement Expenses) are issued but not yet adopted, expected to modify disclosures but not materially impact financial position, results of operations, or cash flows[352](index=352&type=chunk)[353](index=353&type=chunk) [Forward Looking Statements](index=46&type=section&id=Forward%20Looking%20Statements) Forward-looking statements are subject to risks including trade policies, growth strategy challenges, economic conditions, cybersecurity, debt, raw material costs, and litigation, which could cause actual results to differ materially - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially[245](index=245&type=chunk) - Key risks include changes to U.S. and international trade policies (tariffs), challenges in growth strategy implementation, consumer spending levels, global economic conditions (inflation, interest rates, geopolitical tensions), cybersecurity threats, public health crises, risks related to increased debt from the Knoll acquisition, raw material availability and pricing, financial strength of dealers/customers, government procurement pace, and litigation outcomes[245](index=245&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=48&type=section&id=Item%207A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) MillerKnoll manages market risks from commodity prices, foreign exchange rates, and interest rates through hedging strategies, including foreign currency forward contracts and interest rate swap agreements - Changes in commodity prices decreased the Company's direct material costs by approximately **$5.7 million** during fiscal 2025 compared to the prior year, primarily due to decreased steel and aluminum costs, partially offset by increased plastic costs[248](index=248&type=chunk) - The company uses foreign currency forward contracts to offset risks from foreign currency exposures, with **21 outstanding contracts** as of May 31, 2025. These contracts are not designated as hedging instruments[252](index=252&type=chunk)[253](index=253&type=chunk) - Foreign currency hedges and remeasurement resulted in a net gain of **$6.1 million** in fiscal 2025, compared to **$3.0 million** in fiscal 2024[255](index=255&type=chunk) - The company uses interest rate swap agreements to manage interest rate risk, converting variable interest payments to fixed rates. As of May 31, 2025, the fair market value of these instruments was a net asset of **$26.1 million**[256](index=256&type=chunk)[262](index=262&type=chunk) Interest Rate Swap Agreements (as of May 31, 2025) | Notional Amount (Millions USD) | Forward Start Date | Termination Date | Effective Fixed Interest Rate | | :----------------------------- | :----------------- | :--------------- | :---------------------------- | | $150.0 | January 3, 2018 | January 3, 2028 | 1.910% | | $75.0 | January 3, 2018 | January 3, 2028 | 2.348% | | $575.0 | January 31, 2022 | January 29, 2027 | 1.650% | | $150.0 | March 3, 2023 | January 3, 2029 | 3.950% | [Financial Statements and Supplementary Data](index=51&type=section&id=Item%208%20Financial%20Statements%20and%20Supplementary%20Data) This section presents MillerKnoll's audited consolidated financial statements for fiscal years 2023-2025, including comprehensive income, balance sheets, cash flows, and detailed notes, reflecting a net loss of $(36.9) million in fiscal 2025 Consolidated Statements of Comprehensive Income (Fiscal 2025 vs. 2024) | (In millions, except per share data) | May 31, 2025 | June 1, 2024 | | :----------------------------------- | :----------- | :----------- | | Net sales | $3,669.9 | $3,628.4 | | Gross margin | $1,422.6 | $1,419.5 | | Operating earnings | $50.5 | $167.2 | | Net (loss) earnings attributable to MillerKnoll, Inc. | $(36.9) | $82.3 | | (Loss) earnings per share - diluted | $(0.54) | $1.11 | Consolidated Balance Sheets (May 31, 2025 vs. June 1, 2024) | (In millions) | May 31, 2025 | June 1, 2024 | | :-------------------------------- | :----------- | :----------- | | Total current assets | $1,108.7 | $1,069.6 | | Property and equipment, net | $496.1 | $492.0 | | Goodwill | $1,152.4 | $1,226.3 | | Indefinite-lived intangibles | $432.5 | $465.5 | | Total Assets | $3,950.2 | $4,043.6 | | Total current liabilities | $703.8 | $697.7 | | Long-term debt | $1,310.6 | $1,291.7 | | Total Liabilities | $2,615.1 | $2,584.6 | | Total Stockholders' Equity | $1,275.8 | $1,385.1 | Consolidated Statements of Cash Flows (Fiscal 2025 vs. 2024) | (In millions) | May 31, 2025 | June 1, 2024 | | :-------------------------------- | :----------- | :----------- | | Net Cash Provided by Operating Activities | $209.3 | $352.3 | | Net Cash (Used in) Investing Activities | $(100.9) | $(86.3) |\ | Net Cash (Used in) Financing Activities | $(150.3) | $(258.8) |\ | Net (Decrease) Increase In Cash and Cash Equivalents | $(36.7) | $6.9 | | Cash and Cash Equivalents, End of Year | $193.7 | $230.4 | [Note 1 Significant Accounting and Reporting Policies](index=57&type=section&id=Note%201%20Significant%20Accounting%20and%20Reporting%20Policies) This note details MillerKnoll's fiscal year end, foreign currency transaction impacts, and changes in goodwill and indefinite-lived intangible assets due to impairment charges, along with R&D and royalty expenses - The Company's fiscal year ends on the Saturday closest to May 31. Fiscal years 2025 and 2024 both contained 52 weeks, while fiscal year 2023 contained 53 weeks[274](index=274&type=chunk) - The financial statement impact of gains and losses from remeasuring foreign currency transactions resulted in a net loss of **$6.1 million** in fiscal 2025, compared to **$3.0 million** in fiscal 2024[276](index=276&type=chunk) - Goodwill balance decreased to **$1,152.4 million** at May 31, 2025, from **$1,226.3 million** at June 1, 2024, primarily due to impairment charges of **$92.3 million** in fiscal 2025[285](index=285&type=chunk) - Indefinite-lived intangible assets (trade names) decreased to **$432.5 million** at May 31, 2025, from **$465.5 million** at June 1, 2024, due to impairment charges of **$37.7 million** in fiscal 2025[286](index=286&type=chunk) - R&D costs included in Design and research expense were **$60.7 million** in fiscal 2025, **$62.0 million** in fiscal 2024, and **$67.6 million** in fiscal 2023[321](index=321&type=chunk) - Royalty payments to designers totaled **$33.1 million** in fiscal 2025, **$30.6 million** in fiscal 2024, and **$38.1 million** in fiscal 2023[322](index=322&type=chunk) [Note 2 Revenue from Contracts with Customers](index=68&type=section&id=Note%202%20Revenue%20from%20Contracts%20with%20Customers) Revenue is recognized upon transfer of control for goods and services, with disaggregated revenue showing product sales as the primary component, and the largest customer accounting for 5% of net sales in fiscal 2025 - Revenue is recognized when performance obligations are satisfied, typically upon transfer of control of goods and services to the customer. This includes single performance obligations (product sales) and multiple performance obligations (products plus installation services)[324](index=324&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk) Disaggregated Revenue by Contract Type (Fiscal 2025 vs. 2024) | (In millions) | May 31, 2025 | June 1, 2024 | | :------------------------ | :----------- | :----------- | | Single performance obligation: Product revenue | $3,377.3 | $3,362.6 | | Multiple performance obligations: Product revenue | $277.9 | $251.9 | | Multiple performance obligations: Service revenue | $4.3 | $3.6 | | Other | $10.4 | $10.3 | | **Total Net sales** | **$3,669.9** | **$3,628.4** | Revenue by Product Type and Segment (Fiscal 2025) | Segment | Workplace (Millions USD) | Performance Seating (Millions USD) | Lifestyle (Millions USD) | Other (Millions USD) | Total (Millions USD) | | :----------------------- | :----------------------- | :--------------------------------- | :----------------------- | :------------------- | :------------------- | | North America Contract | $1,181.7 | $378.4 | $218.5 | $186.6 | $1,965.2 | | International Contract | $171.6 | $295.2 | $164.8 | $28.4 | $660.0 | | Global Retail | $9.5 | $203.3 | $830.4 | $1.5 | $1,044.7 | | **Total** | **$1,362.8** | **$876.9** | **$1,213.7** | **$216.5** | **$3,669.9** | - The largest single end-user customer accounted for **$197.4 million (5%) of net sales** in fiscal 2025, while the ten largest customers accounted for approximately **18% of net sales**[363](index=363&type=chunk) - During fiscal 2025, the Company recognized net sales of **$87.9 million** related to customer deposits from the prior year[366](index=366&type=chunk) [Note 3 Inventories](index=71&type=section&id=Note%203%20Inventories) MillerKnoll's inventories, primarily finished goods and work in process, are valued using the FIFO method at the lower of cost or net realizable value, totaling $447.5 million as of May 31, 2025 Inventories (May 31, 2025 vs. June 1, 2024) | (In millions) | May 31, 2025 | June 1, 2024 | | :---------------------------- | :----------- | :----------- | | Finished goods and work in process | $329.5 | $314.3 | | Raw materials | $118.0 | $114.3 | | **Total** | **$447.5** | **$428.6** | - Inventories are primarily valued using the first-in first-out (FIFO) method at the lower of cost or net realizable value[284](index=284&type=chunk)[367](index=367&type=chunk) [Note 4 Investments in Nonconsolidated Affiliates](index=71&type=section&id=Note%204%20Investments%20in%20Nonconsolidated%20Affiliates) MillerKnoll holds a 50% equity method investment in Kvadrat Maharam Pty Limited, with an investment balance of $2.5 million and equity earnings of $0.3 million for fiscal 2025, following the sale of its Maars Holding B.V. investment in fiscal 2024 - The Company holds an investment in Kvadrat Maharam Pty Limited, a distribution entity, with a **50.0% ownership interest**, accounted for using the equity method[369](index=369&type=chunk)[371](index=371&type=chunk) - The investment balance in nonconsolidated affiliates was **$2.5 million** at May 31, 2025, and equity earnings were **$0.3 million** for fiscal 2025[369](index=369&type=chunk) - The Company sold its **48.2% investment** in Maars Holding B.V. on October 30, 2023, for **$5.9 million**, resulting in a loss of **$0.4 million** in fiscal 2024[373](index=373&type=chunk) [Note 5 Short-Term Borrowings and Long-Term Debt](index=72&type=section&id=Note%205%20Short-Term%20Borrowings%20and%20Long-Term%20Debt) MillerKnoll's total debt was $1.34 billion as of May 31, 2025, primarily from syndicated revolving credit and term loans, with the Credit Agreement amended in April 2025 to extend maturities and increase Term Loan A Long-Term Debt Obligations (May 31, 2025 vs. June 1, 2024) | (In millions) | May 31, 2025 | June 1, 2024 | | :------------------------------------------ | :----------- | :----------- | | Syndicated revolving line of credit | $330.8 | $390.0 | | Term Loan A, 6.0768%, due April 2030 | $400.0 | $345.0 | | Term Loan B, 6.4413%, due July 2028 | $603.1 | $609.4 | | Supplier financing program | $2.0 | $2.0 | | Finance lease liability | $1.1 | $1.4 | | **Total debt** | **$1,337.0** | **$1,347.8** | | Less: Unamortized discount and issuance costs | $(10.4) | $(12.6) | | Less: Current debt | $(16.0) | $(43.5) | | **Long-term debt** | **$1,310.6** | **$1,291.7** | - In April 2025, the Credit Agreement was amended to extend the maturity of the Revolver and Term Loan A to April 2030 and increase Term Loan A to **$400.0 million**[378](index=378&type=chunk) - Available borrowings under the syndicated revolving line of credit were **$382.2 million** as of May 31, 2025[379](index=379&type=chunk) - The company was in compliance with all debt covenants and restrictions as of May 31, 2025[379](index=379&type=chunk) Annual Maturities of Debt (Subsequent to May 31, 2025) | Fiscal Year | Amount (Millions USD) | | :---------- | :-------------------- | | 2026 | $16.0 | | 2027 | $24.1 | | 2028 | $26.6 | | 2029 | $612.0 | | 2030 | $658.3 | | Thereafter | $— | | **Total** | **$1,337.0** | [Note 6 Leases](index=74&type=section&id=Note%206%20Leases) MillerKnoll leases various facilities with terms through 2042, incurring total lease costs of $112.6 million in fiscal 2025, and has total undiscounted future minimum lease payments of $597.5 million - The Company leases retail stores, showrooms, manufacturing facilities, warehouses, and vehicles, with terms expiring through 2042[384](index=384&type=chunk) Lease Costs (Fiscal 2025 vs. 2024) | (In millions) | May 31, 2025 | June 1, 2024 | | :------------------ | :----------- | :----------- | | Operating lease costs | $90.7 | $94.1 | | Short-term lease costs | $5.2 | $7.1 | | Variable lease costs | $16.7 | $15.9 | | **Total** | **$112.6** | **$117.1** | Undiscounted Annual Future Minimum Lease Payments (as of May 31, 2025) | Fiscal Year | Amount (Millions USD) | | :---------- | :-------------------- | | 2026 | $88.0 | | 2027 | $95.4 | | 2028 | $88.0 | | 2029 | $78.6 | | 2030 | $67.8 | | Thereafter | $179.7 | | **Total lease payments** | **$597.5** | - The weighted-average remaining lease term for operating leases was **6.6 years**, and the weighted-average discount rate for operating leases was **3.6%** as of May 31, 2025[386](index=386&type=chunk) [Note 7 Employee Benefit Plans](index=75&type=section&id=Note%207%20Employee%20Benefit%20Plans) MillerKnoll terminated Knoll's domestic defined-benefit pension plan in fiscal 2025, settling obligations and recognizing a termination gain, while continuing to contribute to other pension and 401(k) plans - The Knoll subsidiary's domestic defined-benefit pension plan was terminated in Q2 fiscal 2025, with obligations settled through lump-sum payments (**$39.9 million**) and an annuity purchase contract (**$84.7 million**), resulting in a **$1.5 million termination gain**[388](index=388&type=chunk) Pension Plan Funded Status (May 31, 2025) | (In millions) | Domestic | International | | :------------ | :------- | :------------ | | Benefit obligation at end of year | $— | $77.9 | | Fair value of plan assets at end of year | $— | $87.3 | | **Funded status (Over) under funded** | **$—** | **$9.4** | Net Periodic Benefit Cost (Fiscal 2025) | (In millions) | Domestic | International | | :------------------------ | :------- | :------------ | | Service cost | $0.9 | $— | | Interest cost | $2.7 | $4.3 | | Expected return on plan assets | $(2.0) | $(5.7) | | Pension plan termination gain | $(1.5) | $— | | Amortization of prior service cost | $— | $0.1 | | Amortization of net (gain) loss | $— | $0.6 | | **Net periodic benefit (income) cost** | **$0.1** | **$(0.7)** | - The Company expects to contribute approximately **$0.9 million** to its pension plan in fiscal 2026[399](index=399&type=chunk) - Expense for the Company's 401(k) matching and other discretionary contributions was **$23.1 million** in fiscal 2025, **$22.0 million** in fiscal 2024, and **$32.4 million** in fiscal 2023[402](index=402&type=chunk) [Note 8 Common Stock and Per Share Information](index=80&type=section&id=Note%208%20Common%20Stock%20and%20Per%20Share%20Information) MillerKnoll reported a diluted loss per share of $(0.54) in fiscal 2025, with 2.77 million anti-dilutive shares excluded, and repurchased 3.29 million shares under a plan increased by $200.0 million EPS Calculation (Fiscal 2025 vs. 2024) | (In millions, except shares) | 2025 | 2024 | | :--------------------------------------------------------------- | :----------- | :----------- | | Numerator for both basic and diluted EPS, Net (loss) earnings attributable to MillerKnoll, Inc. | $(36.9) | $82.3 | | Denominator for basic EPS, weighted-average common shares outstanding | 68,977,267 | 73,291,939 | | Potentially dilutive shares resulting from stock plans | — | 662,817 | | Denominator for diluted EPS | 68,977,267 | 73,954,756 | - Equity awards of **2,773,092 shares** were excluded from diluted EPS calculation for fiscal 2025 because they were anti-dilutive[403](index=403&type=chunk) - The share repurchase plan was increased by **$200.0 million** on July 16, 2024, with **$181.4 million available** as of May 31, 2025. Shares repurchased totaled **3,291,176** in fiscal 2025[404](index=404&type=chunk) [Note 9 Stock-Based Compensation](index=80&type=section&id=Note%209%20Stock-Based%20Compensation) MillerKnoll has 1.45 million shares available for ESPP and 4.88 million for LTIP, with total pre-tax stock-based compensation expense of $31.8 million in fiscal 2025, and $15.3 million in unrecognized costs - As of May 31, 2025, **1,451,373 shares remain available** for future purchases under the Employee Stock Purchase Plan (ESPP), and **4,875,202 shares are available** for issuance under the Long-Term Incentive Plan (LTIP)[406](index=406&type=chunk) Pre-Tax Stock-Based Compensation Expense (Fiscal 2025 vs. 2024) | (In millions) | May 31, 2025 | June 1, 2024 | | :------------------------ | :----------- | :----------- | | Employee stock purchase program | $0.5 | $0.5 | | Stock options | $3.5 | $7.7 | | Restricted stock units | $22.6 | $8.7 | | Performance share units | $5.2 | $3.4 | | Restricted stock awards | $— | $0.3 | | **Total** | **$31.8** | **$20.6** | | Tax benefit | $7.7 | $5.0 | - Total pre-tax stock-based

Financial Performance & Guidance - FY25 revenue reached $3.7 billion[10] - FY25 Adjusted EPS was $1.95[45] - FY25 Adjusted EBITDA was $360 million[45] - Q4 FY25 net sales increased by 8.2% and orders increased by 11.1% year-over-year[59] - Q1 FY26 revenue is projected to be between $899 million and $939 million[66] - Q1 FY26 Adjusted Earnings Per Share is guided to be $0.32 to $0.38[66] Cash Flow & Debt - FY25 Cash Flow from Operations was $209 million[47] - FY25 Free Cash Flow was $102 million[48] - Q4 FY25 cash balance was $194 million[52] - Q4 FY25 long-term debt was $1.311 billion[52] - Q4 FY25 Net Debt to EBITDA Ratio was 2.88x[52] Business Segments - North America Contract represented 54% of FY25 revenue[10] - Global Retail accounted for 28% of FY25 revenue[10] - International Contract contributed 18% to FY25 revenue[10]