Financial Data and Key Metrics Changes - Adjusted earnings per share for the third quarter were 43 cents, compared to 44 cents in the same quarter last year [15] - Consolidated net sales for the quarter were $927 million, up 5.8% year-over-year, and 3.8% higher organically [15] - Orders for the quarter grew to $932 million, up 9.2% as reported and 7.2% higher on an organic basis [15] - Consolidated backlog was $712 million at quarter end, up 3.7% from a year ago [15] - Third quarter consolidated gross margin increased by 20 basis points to 38.1% [16] Segment Performance Changes - North America Contract segment net sales were $489 million, up 4.4% on a reported basis and 4.1% higher organically [17] - Orders in the North America Contract segment increased to $491 million, up 13.1% on a reported basis and 12.8% organically [17] - International Contract segment net sales were $157 million, up 7.8% on a reported basis and 1.9% organically [18] - Global Retail segment net sales were $281 million, up 7.1% on a reported basis and 4.4% organically [19] Market Data and Key Metrics Changes - In Global Retail, comparable sales increased by 5.5%, with North America region comparable sales growth of 3.9% [9] - Sales strength was noted in India, China, Japan, Southern Europe, Germany, and the U.K. [8] Company Strategy and Industry Competition - The company is focused on long-term value creation through sustained revenue growth, margin expansion, cash generation, and shareholder returns [12] - The company plans to open 3-4 more retail locations before the end of fiscal 2026, aiming to double the DWR Herman Miller store footprint over the next several years [10] - The company is preparing for its largest industry trade show, Design Days, showcasing new products from various brands [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of strategic initiatives despite macroeconomic and geopolitical uncertainties [4] - The company anticipates some impact on fourth quarter sales and costs due to the ongoing conflict in the Middle East [7] - Management noted that the consumer remains resilient, with continued demand despite rising prices and inflation concerns [41] Other Important Information - The company reduced its debt by $41 million, lowering the debt to EBITDA ratio to 2.75 times [16] - A quarterly cash dividend of $0.1875 per share was declared, with a yield of 3.9% based on the closing stock price [17] Q&A Session Summary Question: Impact of weather on business - Management noted lower traffic and store closures due to severe weather, primarily impacting the retail segment [26][27] Question: Cost pressures from geopolitical events - Management indicated potential increases in costs for plastics and other materials due to rising oil prices, but no significant impacts had been observed yet [29][40] Question: Office environment outlook - Management reported continued momentum in North America, with robust demand and architectural billings moving in the right direction [34] Question: Trends in government contracts - Management acknowledged a slowdown in federal government business due to geopolitical conflicts but noted ongoing activity in certain projects [44] Question: Retail store openings and costs - Management expects to maintain a similar pace of store openings next year, with incremental costs remaining consistent [63] Question: Product assortment growth - Management highlighted growth in the lifestyle category and ongoing investments in the gaming portfolio as key areas for expansion [65]

Financial Data and Key Metrics Changes - Adjusted earnings per share for the third quarter were $0.43, a slight decrease from $0.44 in the same quarter last year [15] - Consolidated net sales reached $927 million, up 5.8% year-over-year, with organic growth of 3.8% [15] - Orders grew to $932 million, reflecting a 9.2% increase as reported and 7.2% organic growth [15] - Consolidated backlog was $712 million at quarter end, up 3.7% from a year ago [15] - Gross margin increased by 20 basis points to 38.1%, driven by strength in the North America Contract segment [16] Segment Performance Changes - North America Contract segment net sales were $489 million, up 4.4% reported and 4.1% organically, with orders increasing to $491 million, up 13.1% reported and 12.8% organically [17] - International Contract segment net sales were $157 million, up 7.8% reported but only 1.9% organically, with orders at $160 million, up 0.7% reported but down 4.3% organically [18] - Global Retail segment net sales were $281 million, up 7.1% reported and 4.4% organically, with orders improving to $280 million, up 7.9% reported and 5.1% organically [19] Market Data and Key Metrics Changes - The company noted strong sales in India, China, Japan, Southern Europe, Germany, and the U.K. within its international business [9] - In North America, comparable sales growth in the Global Retail segment was 3.9%, with overall segment comparable sales increasing by 5.5% [9][10] Company Strategy and Industry Competition - The company is focused on expanding its retail footprint, with plans to open 14-15 new stores in the U.S. by the end of fiscal 2026 [10] - Strategic levers for North American retail growth include new store openings, expanded product assortment, e-commerce acceleration, and increased brand awareness [10] - The company is optimistic about its long-term growth opportunities in the Middle East despite current geopolitical disruptions [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of strategic initiatives despite macroeconomic and geopolitical uncertainties [4] - The company anticipates some impact on fourth-quarter sales and costs due to the ongoing conflict in the Middle East [7][21] - Management noted that the consumer remains resilient, particularly in the premium segment, despite rising prices and inflation concerns [40] Other Important Information - The company reduced its debt by $41 million during the quarter, lowering its debt to EBITDA ratio to 2.75 times [16] - A quarterly cash dividend of $18.75 per share was declared, with a yield of 3.9% based on the previous closing stock price [17] Q&A Session Summary Question: Impact of weather on business - Management acknowledged lower traffic and store closures due to severe weather, primarily affecting the retail segment [25][27] Question: Cost pressures from geopolitical events - Management indicated potential increases in costs for plastics and other materials due to rising oil prices, but noted that they have not yet seen significant impacts [28][29] Question: Office environment outlook - Management reported continued momentum in North America, with robust demand and architectural billings, though caution was noted in regions affected by geopolitical conflicts [34] Question: Retail segment performance and store openings - Management expects to maintain a similar pace of store openings in the next fiscal year, with incremental costs remaining consistent [63] Question: Product assortment and growth opportunities - The company is focusing on expanding its lifestyle category and gaming portfolio, with significant progress noted in upholstery and bedroom storage [65]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q3 2026 were 43 cents, down from 44 cents in the same quarter last year [14] - Consolidated net sales for the quarter were $927 million, up 5.8% year-over-year, and 3.8% higher organically [14] - Orders for the quarter grew to $932 million, up 9.2% as reported and 7.2% higher on an organic basis [14] - Consolidated backlog was $712 million at quarter end, up 3.7% from a year ago [14] - Third quarter consolidated gross margin increased by 20 basis points to 38.1% [15] - Cash flow from operations was $61 million, and debt was reduced by $41 million, lowering the debt to EBITDA ratio to 2.75 times [15] Business Line Data and Key Metrics Changes - North America Contract segment net sales were $489 million, up 4.4% on a reported basis and 4.1% higher organically [17] - Orders in the North America Contract segment increased to $491 million, up 13.1% on a reported basis and 12.8% organically [17] - International Contract segment net sales were $157 million, up 7.8% on a reported basis but only 1.9% organically [18] - Orders in the International Contract segment were $160 million, up 0.7% on a reported basis but down 4.3% organically [18] - Global Retail segment net sales were $281 million, up 7.1% on a reported basis and 4.4% organically [19] Market Data and Key Metrics Changes - In Global Retail, comparable sales increased by 5.5%, with North America region comparable sales growth of 3.9% [9] - Sales strength was noted in India, China, Japan, Southern Europe, Germany, and the U.K. for the International Contract segment [8] Company Strategy and Development Direction - The company aims to drive long-term value through sustained revenue growth, margin expansion, cash generation, and shareholder returns [12] - The strategy includes expanding the retail footprint, with plans to open 14-15 new stores in the U.S. by the end of fiscal 2026 [10] - The company is focused on creating a diverse product portfolio, particularly in the lifestyle category and gaming [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of strategic initiatives despite macroeconomic and geopolitical uncertainties [4] - The ongoing conflict in the Middle East is expected to create disruptions, impacting fourth quarter sales and costs [5] - Management noted that the office environment remains positive, with continued momentum in North America [34] Other Important Information - The company declared a quarterly cash dividend of $0.1875 per share, payable on April 15, 2026 [16] - Claire Spofford was welcomed to the Board of Directors, bringing valuable consumer insight and retail strategy experience [13] Q&A Session Summary Question: Impact of weather on business - Management noted lower traffic and store closures due to severe weather, primarily affecting the retail segment [26][27] Question: Cost pressures from market volatility - Management anticipates potential increases in costs for plastics and other materials but has not seen significant impacts yet [28][29] Question: Office environment outlook - Management indicated that while there is caution in some regions due to geopolitical issues, overall demand remains robust [34] Question: Retail segment resilience - Management highlighted that the premium consumer base remains resilient despite rising prices and inflation concerns [40] Question: Federal government business trends - Management noted that federal government business has slowed due to the ongoing conflict but there are still active projects [44] Question: Future store openings and costs - Management expects to maintain a similar pace of store openings next year, with incremental costs remaining consistent [66] Question: Product assortment growth - Management is focusing on expanding the lifestyle category and gaming portfolio to enhance product offerings [68] Question: Retail gross margin decline - Management explained that the decline was due to previous favorable freight adjustments and increased shipping costs during promotions [70]