Sales Performance - North America Contract segment net sales for the three months ended August 31, 2024, were $476.2 million, with a gross margin of 36.1%[2] - International Contract segment net sales for the three months ended August 31, 2024, were $146.4 million, with a gross margin of 36.8%[2] - Global Retail segment net sales for the three months ended August 31, 2024, were $238.9 million, with a gross margin of 46.3%[2] - Total net sales for MillerKnoll, Inc. for the three months ended August 31, 2024, were $861.5 million, with a gross margin of 39.0%[2] - North America Contract segment net sales for the twelve months ended June 1, 2024, were $1,922.3 million, with a gross margin of 36.3%[3] - Global Retail segment net sales for the twelve months ended June 1, 2024, were $1,060.5 million, with a gross margin of 46.1%[3] - Total net sales for MillerKnoll, Inc. for the twelve months ended June 1, 2024, were $3,628.4 million, with a gross margin of 39.1%[3] - North America Contract segment net sales reached $519.4 million, with a gross margin of 37.9% for the three months ended September 2, 2023[13] - International Contract segment net sales for the twelve months ended June 3, 2023, were $705.5 million, with a gross margin of 32.6%[14] - Global Retail segment net sales for the twelve months ended June 3, 2023, were $1,252.1 million, with a gross margin of 40.3%[14] - Total net sales for MillerKnoll, Inc. for the twelve months ended June 3, 2023, were $4,087.1 million, with a gross margin of 35.0%[14] Operating Earnings - Operating earnings for MillerKnoll, Inc. for the three months ended August 31, 2024, were $15.2 million, representing 1.8% of net sales[2] - Operating earnings for MillerKnoll, Inc. for the twelve months ended June 1, 2024, were $167.2 million, representing 4.6% of net sales[3] - Adjusted Operating Earnings for the North America Contract segment were $44.9 million, representing 9.4% of net sales for the three months ended August 31, 2024[12] - Adjusted Operating Earnings for the International Contract segment were $13.3 million, representing 9.1% of net sales for the three months ended August 31, 2024[12] - Adjusted Operating Earnings for the Global Retail segment were $7.4 million, representing 3.1% of net sales for the three months ended August 31, 2024[12] - Adjusted Operating Earnings for MillerKnoll, Inc. were $49.9 million, representing 5.8% of total net sales for the three months ended August 31, 2024[12] - Adjusted operating earnings for MillerKnoll, Inc. were $55.4 million, accounting for 6.0% of net sales for the three months ended September 2, 2023[13] - Adjusted operating earnings for the North America Contract segment for the twelve months ended June 3, 2023, were $174.0 million, representing 8.2% of net sales[14] - Adjusted operating earnings for the International Contract segment for the twelve months ended June 3, 2023, were $77.2 million, representing 10.9% of net sales[14] - Adjusted operating earnings for the Global Retail segment for the twelve months ended June 3, 2023, were $60.1 million, representing 4.8% of net sales[14] - Adjusted operating earnings for MillerKnoll, Inc. for the twelve months ended June 3, 2023, were $256.5 million, representing 6.3% of net sales[14] Year-over-Year Changes - North America Contract reported net sales of $476.2 million for the three months ended August 31, 2024, a decline of 8.3% from the prior year[15] - International Contract net sales were $146.4 million for the three months ended August 31, 2024, reflecting a decrease of 3.5% year-over-year[15] - Global Retail net sales reached $238.9 million for the three months ended August 31, 2024, down 3.1% compared to the previous year[15] - MillerKnoll, Inc. reported net sales of $861.5 million for the three months ended August 31, 2024, a decrease of 6.1% from the prior year[16] - North America Contract reported net sales of $519.4 million for the three months ended September 2, 2023, reflecting an 8.0% decline from the prior year[19] - International Contract net sales decreased by 19.4% year-over-year to $151.7 million for the three months ended September 2, 2023[19] - Global Retail net sales were reported at $246.6 million for the three months ended September 2, 2023, a decline of 24.4% compared to the previous year[20] - MillerKnoll, Inc. reported net sales of $917.7 million for the three months ended September 2, 2023, down 14.9% from the prior year[20] Organic Orders - North America Contract organic orders increased by 5.1% year-over-year, totaling $536.5 million for the three months ended August 31, 2024[17] - International Contract organic orders grew by 5.5% year-over-year, amounting to $168.0 million for the three months ended August 31, 2024[17] - Global Retail organic orders were $235.9 million for the three months ended August 31, 2024, reflecting a decline of 1.3% from the prior year[18] - MillerKnoll, Inc. reported organic orders of $940.4 million for the three months ended August 31, 2024, an increase of 3.5% year-over-year[18] - North America Contract organic sales showed a slight decline of 0.6% for the three months ended September 2, 2023, with net sales of $520.0 million[19] - International Contract organic sales decreased by 15.6% year-over-year for the three months ended September 2, 2023, totaling $147.7 million[19] - Global Retail organic sales were reported at $244.6 million for the three months ended September 2, 2023, reflecting a 13.0% decline from the prior year[20] - MillerKnoll, Inc. organic sales decreased by 6.9% year-over-year for the three months ended September 2, 2023, with net sales of $912.3 million[20] Charges and Expenses - Integration charges for the North America Contract segment amounted to $24.8 million for the three months ended August 31, 2024[12] - The company reported a total operating loss of $15.7 million for the Corporate segment for the three months ended August 31, 2024[12] - The total operating expenses for MillerKnoll, Inc. were $317.8 million, representing 34.6% of net sales for the three months ended September 2, 2023[13] - Restructuring charges for the North America Contract segment totaled $4.4 million, or 0.8% of net sales for the three months ended September 2, 2023[13] - The company reported impairment charges of $8.1 million, or 1.8% of net sales for the North America Contract segment for the three months ended June 1, 2024[13] - Restructuring charges for MillerKnoll, Inc. totaled $34.0 million for the twelve months ended June 3, 2023[14] Currency Effects - The currency translation effects had a minor impact, with adjustments of $2.8 million for the three months ended August 31, 2024, and $0.5 million for the six months ended November 30, 2024[16] - Currency translation effects negatively impacted reported orders by $7.3 million for MillerKnoll, Inc. in the three months ended September 2, 2023[22] Other Adjustments - The impact of an extra week in FY23 reduced orders by $20.6 million for the twelve months ended June 1, 2024[22] - Fully and HAY eCommerce adjustments accounted for a total reduction of $75.8 million in orders for the twelve months ended June 3, 2023[22] - Organic orders for the twelve months ended June 3, 2023, were $3,686.8 million, reflecting a decrease from the previous year[22]

Core Viewpoint - MillerKnoll, Inc. is set to release its fiscal 2025 third quarter financial results on March 26, 2025, after market close, followed by a conference call to discuss the results [1][2]. Financial Results Announcement - The financial results will be released on March 26, 2025, after the stock market closes [1]. - A conference call and webcast will take place at 5:00 p.m. Eastern time on the same day to discuss the financial and operational results [1][3]. Conference Call Details - The conference call is scheduled for March 26, 2025, at 5:00 p.m. Eastern Time [3]. - Participants can join the call via webcast on the Company's investor relations website [3]. - For those preferring to join by phone, the dial-in number is (888) 672-2415, with the conference identification number being 5515788 [4]. Company Overview - MillerKnoll is a collective of brands focused on designing sustainable and equitable environments, including well-known names like Herman Miller and Knoll [5]. - The company aims to redefine modern design for the 21st century, promoting a sustainable and beautiful future [5].

Financial Performance - Net earnings for the six months ended November 30, 2024, were $34.7 million, a decrease of 31.4% compared to $50.5 million for the same period in the previous year[9]. - For the six months ended December 2, 2023, total net sales were $1,831.9 million, a decrease of 1.9% compared to $1,867.2 million for the same period last year[27]. - Total revenue for the three months ended November 30, 2024, was $970.4 million, a 2.0% increase from $949.5 million for the same period in 2023[31]. - Operating earnings for the total reportable segments increased to $80.0 million for the three months ended November 30, 2024, from $73.6 million in the prior year[81]. - The company reported net earnings attributable to MillerKnoll, Inc. of $34.1 million for the three months ended November 30, 2024[45]. Cash Flow and Liquidity - Cash flows from operating activities decreased to $76.4 million for the six months ended November 30, 2024, down from $213.4 million in the prior year, representing a decline of approximately 64.2%[9]. - The total cash and cash equivalents at the end of the period were $221.1 million, down from $225.8 million, a decrease of 2.1%[9]. - The company experienced a net decrease in cash and cash equivalents of $9.3 million, contrasting with an increase of $2.3 million in the prior year[9]. - The net cash position as of November 30, 2024, was $0.8 million, a decrease from $3.6 million as of June 1, 2024[21]. Assets and Liabilities - Total current assets as of November 30, 2024, increased to $1,125.8 million from $1,069.6 million as of June 1, 2024, reflecting a growth of approximately 5.2%[8]. - Total liabilities increased to $2,652.0 million as of November 30, 2024, compared to $2,584.6 million as of June 1, 2024, indicating a rise of about 2.6%[8]. - The company reported a total stockholders' equity of $1,310.8 million as of November 30, 2024, down from $1,385.1 million as of June 1, 2024, reflecting a decrease of approximately 5.4%[8]. - The carrying value of the company's long-term debt as of November 30, 2024, was $1,402.8 million, with a fair value of $1,484.4 million[51]. Inventory and Sales - Inventories, net, remained relatively stable at $430.6 million as of November 30, 2024, compared to $428.6 million as of June 1, 2024[8]. - Product revenue from single performance obligations was $1,693.3 million, down from $1,716.8 million, reflecting a decline of 1.8%[27]. - The Americas Contract segment reported total revenue of $504.2 million for the three months ended November 30, 2024, up from $476.1 million in the same period last year[31]. - The Global Retail segment's total revenue decreased to $219.9 million for the three months ended November 30, 2024, from $232.2 million in the same period in 2023[31]. Dividends and Shareholder Returns - The company paid dividends of $26.2 million during the six months ended November 30, 2024, compared to $28.1 million in the same period last year, a decrease of approximately 6.8%[9]. - The company declared dividends of $0.1875 per share, totaling $13.7 million for the period[27]. Restructuring and Integration Costs - The company incurred restructuring expenses of $7.0 million in the previous year, which were not reported in the current period[9]. - The Company incurred $28.3 million in costs related to the Knoll Integration for the six months ended November 30, 2024, primarily for exit and disposal costs[87]. - The total restructuring charges related to the 2024 restructuring plan amounted to $30.8 million for the year ended June 1, 2024, with no future costs expected[92]. Tax and Compliance - The effective tax rate for the three months ended November 30, 2024, was 21.8%, slightly higher than the previous year's rate of 21.4% due to a mix of earnings in higher tax jurisdictions[47]. - The company recorded a liability for interest and penalties related to uncertain tax benefits of $0.9 million as of November 30, 2024[49]. Other Comprehensive Income - Other comprehensive loss for the six months ended November 30, 2024, was $5.8 million, compared to a loss of $29.8 million in the previous period, indicating an improvement[10]. - The Company recognized a gain of $3.6 million in other comprehensive loss for the three months ended November 30, 2024, compared to a loss of $7.9 million in the same period of 2023[63].

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 were $970 million, a 2.2% increase year-over-year, with a 2.4% organic increase [22] - Consolidated orders were $922 million, down 2.3% as reported and 1.9% lower on an organic basis [22] - Gross margin for the quarter was 38.8%, slightly down from the previous year, primarily due to product and channel mix [23] - Cash flow from operations was $55 million, with approximately $93 million returned to shareholders through dividends and share buybacks in the first six months of the fiscal year [24] Business Line Data and Key Metrics Changes - **Americas Contract Segment**: Net sales were $504 million, up 6.2% organically, with new orders of $457 million, up 4.9% year-over-year [25] - **International Contract and Specialty Segment**: Net sales were $246 million, up 2.1% reported and just over 1% organically, with orders down 6.5% reported and over 7% organically [26] - **Retail Segment**: Net sales were $220 million, a reported decrease of 5.3% and down 4% organically, with new orders down 9.6% reported and 8.4% organically [28] Market Data and Key Metrics Changes - Strong order growth in the Middle East and parts of Asia, with excitement building for the brand internationally [9] - Positive trends in the Americas Contract segment, with leading indicators such as project funnel additions and customer mockup requests up year-over-year [8] Company Strategy and Development Direction - Focus on expanding the dealer distribution internationally and enhancing the product assortment [48] - Plans to open new stores and expand product offerings in early 2025, including Design Within Reach Studios and a Herman Miller store [12] - Emphasis on sustainability, with initiatives to eliminate PFAS from the product portfolio by 2025 in North America and 2027 globally [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the year ahead, citing momentum in several business segments and improving demand indicators [7] - Anticipation of improved market conditions in the Americas Contract business, supported by external indicators like the Architecture Billings Index [30] - Guidance for full-year adjusted earnings per share narrowed to between $2.11 and $2.17, reflecting expectations of a softer third quarter [32] Other Important Information - The company is closely monitoring tariff proposals and has a playbook ready to mitigate potential impacts [14] - Management highlighted the importance of adapting to changing work environments and the need for spaces that facilitate in-person connections [80] Q&A Session Summary Question: Exposure to tariffs and potential impacts - Management discussed their playbook for managing tariff impacts, including identifying alternative supply sources and potential pricing actions [38][40] Question: Slower order development and sales cycles - Management noted a unique slowdown pre-election but observed a pickup post-election, indicating no long-term concerns [44] Question: International demand dynamics and integration of Knoll - Management acknowledged strong demand in the APMEA region but noted softness in other areas, emphasizing the project-based nature of international business [50] Question: Feedback from customers post-election - Dealer sentiment has improved, with leading indicators showing positive trends, including a significant increase in funnel additions [60] Question: Trends in work-from-home and hybrid policies - Conversations with executives indicate a focus on bringing employees back to the office, with an increase in larger projects [81] Question: Retail business performance during the holiday period - Management indicated that the positive performance was due to a well-executed promotional strategy combined with ongoing initiatives driving momentum [90]

Financial Data and Key Metrics Changes - Consolidated orders for Q1 2025 were $936 million, up 2.4% year-over-year on a reported basis and up 3.5% organically [11] - Consolidated net sales for Q1 2025 were $862 million, reflecting a decrease of 6.1% year-over-year on a reported basis and a decrease of 5.3% organically [12] - Consolidated gross margin was 39%, essentially flat compared to the prior year [12] Business Line Data and Key Metrics Changes - Americas Contract segment net sales were $455 million, representing an organic decrease of 7% from the same quarter a year ago [13] - International Contract and Specialty segment net sales were $214 million, down 6.5% on a reported basis and down 6.3% organically year-over-year [14] - Retail segment net sales were $193 million, a reported decrease of 2.8% and essentially flat performance on an organic basis [15] Market Data and Key Metrics Changes - Orders in the Americas Contract segment totaled just under $513 million, up 5.7% over last year organically [13] - Orders in the International Contract and Specialty segment totaled $234 million, resulting in a year-over-year increase of 2.7% on a reported basis [14] - Retail business in North America outperformed year-on-year retail industry comparisons by approximately 6 points during the quarter [8] Company Strategy and Development Direction - The company launched several initiatives to support its contract business and meet evolving client needs [5] - New flagship locations were introduced in London and New York to enhance customer experience [6] - The company is focused on growth and positioning itself for the future, with a strong emphasis on team experience and talent acquisition [9][10] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the year ahead, citing improved demand trends and a strong backlog position [10][17] - The company anticipates that a slight drop in interest rates will stimulate order placements from customers and trade partners [9] - Management noted that the retail segment is expected to benefit from improving macroeconomic conditions and a rebound in the housing market [9][35] Other Important Information - The company generated $21 million in cash flow from operations and repurchased approximately 1.5 million shares for a total cash outlay of approximately $44 million [13] - The company has been certified as a 2024 US Great Place to Work, highlighting its commitment to associate experience [9] Q&A Session Summary Question: Guidance for Q2 margins and revenue - Management indicated that gross margin improvements are expected due to increased order activity, but a shift in business mix may keep margins lower [20][21] Question: Retail market outlook - Management expressed optimism about retail demand trends, anticipating improved consumer confidence due to recent interest rate cuts [22] Question: Delivery times for orders - Management explained that longer delivery times are due to an increase in larger, more complex projects and changing customer behavior [25][26] Question: Industry groups driving order growth - Management noted strong activity in financial services, healthcare, and technology sectors, with many companies looking to bring employees back to the office [28][29] Question: Long-term margin expectations - Management believes that economic improvements will allow for better overhead cost leverage, potentially leading to higher margins in the future [32][33] Question: Integration of Knoll and other brands - As of Q1, 60% of the international dealer network has been integrated, with plans to complete the process by the end of the fiscal year [36] Question: Back-to-work and hybrid trends - Management noted a shift towards more frequent in-office collaboration and expressed confidence in their product portfolio for hybrid work environments [37][38]

Financial Performance - Consolidated net sales for Q1 FY2025 were $861.5 million, a decrease of 6.1% year-over-year[5] - The company reported a diluted loss per share of $0.02, compared to earnings of $0.22 in the same period last year[6] - Adjusted earnings per share decreased to $49.9 million, down from $55.4 million, indicating a decline of 9.9%[34] - For Q2 FY2025, net sales are expected to range between $950 million and $990 million, with adjusted diluted earnings projected between $0.51 and $0.57 per share[16] - Organic sales growth showed a decline of 6.1% year-over-year, with total net sales reported at $861.5 million for the three months ended August 31, 2024[39] - Adjusted earnings per share for the same period were $0.36, slightly down from $0.37 in the prior year[35] Orders and Backlog - Orders in Q1 increased by 2.4% to $935.9 million, with organic growth of 3.5%, driven by a 5.2% increase in Americas Contract orders[2] - Ending backlog rose to $758.0 million, reflecting a 9.2% increase from the previous year[2] - The backlog for MillerKnoll as of Q1 FY2025 was reported at $758.0 million[44] Segment Performance - Americas Contract segment net sales were $454.6 million, down 7.3% year-over-year, while operating margin decreased to 3.8%[8] - International Contract and Specialty segment net sales were $213.5 million, down 6.5% year-over-year, but orders increased by 2.7%[10] - Adjusted operating earnings for the Americas segment were $43.3 million, down from $52.0 million, reflecting a decrease of 16.3%[34] - Operating earnings for the Global Retail segment increased to $5.5 million, up from $3.1 million, showing a growth of 77.4%[34] Expenses and Margins - Operating expenses for the quarter were $321.1 million, up 1.0% from the prior year, while adjusted operating expenses decreased by 5.2% to $286.9 million[6] - Gross margin remained flat at 39.0%, despite lower revenue levels[5] - Gross margin for the International Contract & Specialty segment improved to 44.5%, compared to 42.4% in the previous period[34] - Operating expenses increased to $321.1 million, resulting in an operating expense percentage of 37.3%, up from 34.6% in the prior year[37] Assets and Liabilities - Total current assets increased slightly to $1,071.8 million from $1,069.6 million[24] - Total liabilities increased to $2,610.0 million from $2,584.6 million, marking a rise of 0.98%[25] - The company reported a total of $4,019.1 million in assets, a slight decrease from $4,043.6 million[24] Cash Flow and Debt - Cash and cash equivalents decreased to $209.7 million from $230.4 million, a decline of 8.9%[24] - The trailing twelve-month adjusted bank covenant EBITDA was $412.5 million, with total debt less cash at $1,170.7 million, resulting in a net debt to adjusted EBITDA ratio of 2.84[38] Tax Rate - The effective tax rate for the three months ended August 31, 2024, was 66.2%, significantly higher than 24.4% in the prior year[43] Integration Charges - Integration charges for the Americas segment were $22.5 million, compared to $3.1 million in the previous period, reflecting a significant increase[34] Guidance and Future Outlook - The company anticipates a shift in holiday promotional periods, potentially moving $17 million to $23 million of net sales from Q2 to Q3 FY2025[17]

Channels of Distribution • Independent Contract Furniture Dealers - Most of the Company's product sales are made to a global network of independently owned and operated contract furniture dealerships. These dealers purchase the Company's products and distribute them to end customers. Many of these dealers also offer furniture-related services, including product installation. • eCommerce - The Company sells products in its portfolio of brands across the globe, through localized Herman Miller, Knoll, and DWR ...

John Maeda, Tina Edmundson and Jeanne Gang Join MillerKnoll's Board of Directors ZEELAND, Mich., July 29, 2024 /PRNewswire/ -- MillerKnoll (NASDAQ: MLKN), a global leader in design, appointed three new directors – John Maeda, Tina Edmundson and Jeanne Gang – to its Board of Directors. With the retirement of two directors, MillerKnoll evaluated the composition of its board of directors and recruited new members with skills, qualifications and diverse backgrounds to augment the expertise of the current board ...

Financial Data and Key Metrics Changes - For Q4, the company reported adjusted diluted earnings of $0.67 per share, exceeding guidance, driven by strong gross margin performance and favorable tax benefits [68] - Consolidated net sales for Q4 totaled $889 million, reflecting an organic decrease of 5.2% year-over-year, while new orders totaled $933 million, indicating organic growth of approximately 3% [68] - The consolidated gross margin improved to 39.6%, up 250 basis points year-over-year and 100 basis points sequentially, driven by price realization and inventory management [69] Business Line Data and Key Metrics Changes - In the Americas Contract segment, net sales were $417 million, down 12.2% year-over-year, but new orders increased by 5.7% [71] - The International Contract and Specialty segment saw net sales of $245 million, up 3.8% organically year-over-year, with new orders remaining flat [72] - The Global Retail segment reported net sales of $227 million, a decline of 7.2% year-over-year, but organic demand growth was noted [77] Market Data and Key Metrics Changes - Traffic at trade shows globally has improved, nearing pre-COVID levels, indicating a positive trend in the contract market [14][62] - The North American housing market slowdown is affecting demand levels, but there are signs of easing negative trends in home sales [64] Company Strategy and Development Direction - The company plans to invest in MillerKnoll showrooms, digital platforms, and tools to support contract business and dealers [57] - There is a focus on expanding the retail footprint and optimizing product assortment to drive long-term sales growth [58] - Sustainability and innovation are emphasized as key considerations for customers, with ongoing efforts to incorporate more sustainable materials [65] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about fiscal 2025, expecting net sales to exceed fiscal 2024 levels and adjusted earnings per share to be in the range of $2.10 to $2.30 [14] - The demand environment for contract and key markets is improving, with healthy activity levels across the business [61] - The company is prepared to harness pent-up retail demand as the home furnishings market is expected to improve [64] Other Important Information - The company achieved annualized run rate savings of $160 million from acquisition cost synergies, exceeding initial targets [73] - The company launched over 30 new products at recent design events, showcasing a commitment to innovation [75] Q&A Session Summary Question: Can you elaborate on the investments on the commercial side? - Management highlighted investments in digital platforms and tools to support dealers, expanding international contracts, and enhancing retail presence [2] Question: What is the outlook for gross margin? - Management did not provide specific guidance but noted factors influencing margins, including pricing benefits and operational efficiencies [4][22] Question: Is there evidence of a plateau in return to work? - Management indicated that the return to office is evolving positively, with increased collaboration and hybrid work models becoming more common [8] Question: What is the status of the dealer network integration? - The dealer network is stable and well-aligned, with ongoing improvements and strategic consolidations enhancing market position [28] Question: What are the expectations for consumer demand in the upcoming year? - Management expressed optimism about pent-up demand in retail, anticipating improvements in the housing market to positively impact sales [64]

MillerKnoll, Inc. Reports Fourth Quarter and Fiscal 2024 Results Zeeland, Mich., June 26, 2024 – MillerKnoll Inc. (NASDAQ: MLKN) today reported results for the fourth quarter and full fiscal year 2024, which ended June 1, 2024. Business Highlights • Orders in the fourth quarter were up 1.1% on a reported basis and up 2.9% organically from last year. • Fourth quarter and full year gross margin improved 250 basis points and 410 basis points, respectively yearover-year. • Achieved annualized run-rate cost syne ...