Why MillerKnoll Stock Crashed Today

Core Viewpoint - MillerKnoll's stock experienced a significant decline of 21% following an earnings miss in its fiscal Q3 2026 report, with actual earnings falling short of analyst expectations [1][5]. Financial Performance - Analysts had projected earnings of $0.45 per share on sales of $942 million, but the company reported earnings of $0.43 per share on sales of $926.6 million [1][3]. - Despite the sales miss, MillerKnoll achieved a year-over-year sales growth of 6% and improved its gross profit margin by 20 basis points while reducing operating costs by 26% [2][3]. Profitability - The company transitioned from operating and net losses in the previous year to operating and net profits this quarter, although the reported profit of $0.43 per share was only on a non-GAAP basis, with GAAP earnings at $0.34 per share [3][4]. Future Guidance - For the next quarter, MillerKnoll projects sales between $955 million and $995 million, indicating only about a 1% improvement from Q3, which is a slowdown compared to previous performance [4]. - Gross margins are expected to improve to approximately 39%, an increase of 100 basis points sequentially, while non-GAAP earnings are anticipated to rise to about $0.52 per share [4]. Market Reaction - Investors are dissatisfied with the Q3 results and the guidance for the next quarter, particularly since the projected non-GAAP earnings of $0.52 per share fall short of the $0.59 per share forecasted by Wall Street analysts [5].