MillerKnoll Issues Cautious Guidance in 2026, Continues to Offset Tariff Costs

Core Viewpoint - MillerKnoll is cautiously navigating the impact of U.S. trade policies while providing guidance for fiscal year 2026, reflecting a conservative approach in its financial outlook [1]. Financial Performance - In the fiscal second quarter ending November 29, MillerKnoll reported a revenue decline of 1.6% to $955.2 million [2]. - Earnings per share decreased by 28.6% to 35 cents, with North American contract sales down 3.1% and international contract sales down 6.3% year-on-year, despite a 4.8% increase in North American orders [3]. Market Dynamics - The company noted that momentum is building in both North America and internationally as organizations focus on employee collaboration and workspace refreshment, with international orders particularly strong from Europe, the U.K., China, and India [3]. Operational Costs and Expansion - MillerKnoll faced challenges from costs associated with new store openings, net tariff expenses, and foreign currency fluctuations. The company expanded its retail presence with new stores in Salt Lake City and three locations in California [4]. Future Guidance - For the third quarter of 2026, MillerKnoll anticipates sales to range between $923 million and $963 million, indicating a potential improvement from the second quarter's $955.2 million. Adjusted EPS is projected to fluctuate between 42 cents and 48 cents, while gross margin is expected to decrease to between 37.9% and 38.9% [5]. - The company's outlook for the third quarter incorporates considerations of tariffs, new store investments, and seasonal softness in contract businesses due to year-end and the timing of the Chinese New Year [6].