Inquired whether increased discounting or promotions would boost volumes enough to offset gross margin impact, given recent price increases in the industry.

Kevin Veltman noted the contract industry's ability to pass on costs. Debbie Propst stated that Global Retail took a net 8% price increase in Q4, with discounting down 50 bps YoY, and saw strong consumer absorption, especially for 'icons' where they have pricing authority. “From a retail side, Phillip, we actually took our biggest price increase of the year in Q4. We took about a net 8% increase in North America midway through the quarter. And we believe that the consumer absorbed that really well. We actually took our discounting rate down 50 bps year-on-year and held the number of promotional days flat.”

Asked about specific cost buckets being targeted for near-term improvements (overhead vs. efficiency) and the role of brand portfolio optimization in these efforts.

Jeff Stutz emphasized establishing clear priorities, improving hygiene and discipline, and focusing collective creativity on problem-solving. He highlighted leveraging manufacturing capacity, productivity improvements, and selective incremental cost additions, stating it's about reinvigorating existing skills rather than reinvention. “this does not, from my perspective, require reinvention of MillerKnoll. This is more an exercise in reinvigorating skills and capabilities that we have and have always had. So now to your question, when we talk about elevating our performance, it's really about focusing all of those efforts that will help us grow the top line and improve profitability.”

Asked about confidence in the North America Contract business given recent noise, and what macro assumptions are embedded in the outlook.

Jeff Stutz pointed to pre-order metrics like full-year funnel additions, value of projects won, and backlogs showing year-over-year and sequential improvement. He also noted increasing average weekly order rates consolidated throughout the quarter and positive external measures like Class A leasing absorption and dealer sentiment. “if you look at things like our full year funnel, how much is getting added to the funnel, the value of projects won, backups. We were seeing both year-over-year and sequential improvement in those types of metrics. As the quarter unfolded, maybe another point I would call out is if you set a some of the year-over-year noise from the order pull ahead, just our average weekly order rates on a consolidated basis we're going up each month as we went through the quarter.”

MLKN

MillerKnoll (MLKN) Q4 FY26 earnings call: guidance and Q&A

Earnings call· May 2026 (Q4 FY26)· Consumer Discretionary· Jun 24, 2026

Source: earnings call transcript

Executive summary

MillerKnoll Q4 FY26 — Steady Growth and Strategic Shifts for FY27

MillerKnoll delivered steady top-line growth and met EPS expectations in Q4 FY26, driven by strong North America Contract and Global Retail performance. Management is focused on enhancing operating and cost discipline, strengthening the balance sheet through debt reduction, and improving cash flow, while strategically expanding its retail footprint with smaller, more efficient store formats.

Highlights

Consolidated net sales reached $1 billion, up 4.4% year-over-year and above guidance.
Adjusted EPS of $0.55 was at the top end of the guidance range.
North America Contract segment sales grew 6.9% reported and 6.7% organically.
Global Retail segment sales increased 5.5% reported and 4.5% organically, gaining market share.
Consolidated orders, adjusted for prior year pull-forward, were down only approximately 1% year-over-year.

Concerns

Consolidated orders were down 6.3% reported (6.9% organic) due to a prior year pull-ahead of $55M-$60M.
International Contract sales declined 3.8% reported (5.8% organic) impacted by global geopolitical concerns and macro uncertainty.
International Contract adjusted operating margin decreased 470 basis points year-over-year.
Global Retail adjusted operating margin was down 110 basis points year-over-year, reflecting new store investments and Holly Hunt underperformance.
Net debt-to-EBITDA ratio ticked up slightly to 2.8x at quarter end.

Guidance & targets

Category	Target	Timeline	Confidence
Q1 FY27 Net Sales	$928 million to $968 million high materiality	Q1 · FY27	High
Q1 FY27 Gross Margin	38.7% to 39.7% medium materiality	Q1 · FY27	High
Q1 FY27 Adjusted Operating Expense	$316 million to $326 million medium materiality	Q1 · FY27	High
Q1 FY27 Adjusted EPS	$0.33 and $0.39 per share high materiality	Q1 · FY27	High
Full-year FY27 Net Sales	$3.93 billion to $4.13 billion high materiality	FY27	High
Full-year FY27 Adjusted EPS	$1.85 to $2.15 high materiality	FY27	High
Full-year FY27 EPS Cadence	Approximately 40% in H1 and 60% in H2 low materiality	FY27	Medium
FY27 Incremental New Store Expense	Approximately $6 million per quarter medium materiality	FY27	High
FY27 Incremental Incentive Compensation Program Cost	Approximately $25 million medium materiality	FY27	High
Midterm Net Debt to EBITDA Ratio	2.0x to 2.5x high materiality	Midterm	High
FY27 Herman Miller Store Openings	9 to 11 stores medium materiality	FY27	High
FY27 DWR Store Openings	5 to 7 stores medium materiality	FY27	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
North America Contract Sales accelerated, driven by volume leverage and price capture. Orders were down due to a prior-year pull-ahead of $55M-$60M. Adjusted operating margin expanded 40 bps YoY. Orders: $511 millionOrders YoY: down 10% reported and organicOrders YoY (adjusted for pull-forward): essentially flat	$530 million	6.9% reported, 6.7% organically	—	8.2% operating margin, 10.4% adjusted operating margin
International Contract Sales and orders impacted by global geopolitical concerns, particularly in parts of Europe, UK, and Latin America, partially offset by strength in China and India. Adjusted operating margin down 470 bps YoY due to deleverage, regional sales mix, FX, and timing of program spend. Orders: $173 millionOrders YoY: down 8.7% reported, 10.6% organically	$179 million	down 3.8% reported, 5.8% organically	—	7.5% reported operating margin, 8.2% adjusted operating margin
Global Retail Gained market share. Adjusted operating margin down 110 bps YoY due to planned investments in new store openings and underperformance of Holly Hunt brand. Comparable sales: increased 3.6%Comparable sales in North America: increased 4.2%Orders: $288 millionOrders YoY: up 2.8% reported, 2% organicNorth America orders YoY: grew 8.7%	$295 million	5.5% reported, 4.5% organically	—	4.6% operating margin, 5.4% adjusted operating margin

MLKN operating KPIs by quarter

MLKN operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call May 2026 Q4 FY26	Aug 2026 Q1 FY27	Change vs prior quarter
Orders	$972M Orders at the consolidated level for the quarter were $972 million, down 6.3% as reported and 6.9% lower on an organic basis. Source: earnings call transcript	$914M Consolidated orders for the quarter were $914 million, up 3.2 percent as reported and 3.5 percent on an organic basis. Source: earnings call transcript	-6%
Backlog	$679M Our consolidated backlog was $679 million at quarter end, down 10.8% from a year ago, reflecting both the prior year order pull forward dynamic and the timing of shipments at year end. Source: earnings call transcript	$669M Our consolidated backlog was $669 million at quarter end, down 3.1 percent from a year ago. Source: earnings call transcript	-1.5%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Consolidated Backlog $679 million quarter end (May 30, 2026)

down 10.8% from a year ago

Reflecting both the prior year order pull forward dynamic and the timing of shipments at year end.

Capital programs

Muskegon manufacturing plant consolidation announced

Benefit:improving overall operational efficiency

Recently announced consolidation of the manufacturing plant in Muskegon, Michigan into other facilities to evaluate capacity utilization opportunities.

Risks & headwinds

Global geopolitical concerns Q4 FY26

Impacted International Contract segment order activity, down 8.7% reported and 10.6% organically; adjusted operating margin down 470 bps YoY.

Mitigation:Strategic approach to targeting key growth opportunities and managing costs in a disciplined manner in affected regions.

Macro uncertainty Q4 FY26

Contributed to lower order activity in International Contract segment, down 8.7% reported and 10.6% organically.

Mitigation:Encouraging demand signals across key leading indicators in North America Contract, such as increased showroom visits and internal forward demand indicators.

Holly Hunt brand underperformance Q4 FY26

Contributed to Global Retail adjusted operating margin being down 110 bps YoY.

Mitigation:Implementing restructuring to better align costs with demand and strengthening leadership to enhance commercial execution, addressing lack of product development and newness not resonating.

Prior year order pull-ahead Q4 FY26 (comparison to Q4 FY25)

Resulted in consolidated orders being down 6.3% reported (6.9% organic) and North America Contract orders down 10% reported and organic in Q4 FY26, compared to a strong Q4 FY25 with $55M-$60M pull-ahead.

Mitigation:Adjusting for this, orders in the quarter were down approximately 1% year over year, indicating underlying demand is more stable.

Q&A highlights

Asked about Holly Hunt's revenue contribution and the specific challenges it faces, particularly regarding underperformance.

Management declined to provide specific revenue figures for Holly Hunt but attributed challenges to cost issues, leadership changes, and a lack of product development. They are implementing restructuring and creative corrections to improve performance.

“We've never sized individual brands within the portfolio, so I'm not going to provide that level of color here. But principally, the challenges that we're facing are cost related. And candidly, we had some leadership challenges that are being addressed. We've had a lack of product development in that particular brand and the newness that was launched has not been resonating.”

asked by Gregory Burns · answered by Jeff Stutz

2 min read 6 chapters

Detailed narrative

Strategic Priorities for FY27

Incoming Interim CEO Jeff Stutz outlined three key areas of focus for fiscal 2027: elevating operating discipline, enhancing cost discipline across businesses, and strengthening the balance sheet through debt reduction and improved cash flow. These initiatives aim to improve financial performance and execution, leveraging existing capabilities rather than reinvention.

The company seeks to establish clear priorities and improve hygiene around managing them, focusing collective creativity on problem-solving.

Retail Strategy Evolution

MillerKnoll is making strategic shifts in its Global Retail segment, with a focus on opening more smaller, approximately 1,800 square feet Herman Miller store formats. These stores offer lower upfront capital, quicker productivity, and payback in under three years, while also serving as lead generators for the contract business.

The company plans to open 9 to 11 Herman Miller stores and 5 to 7 Design Within Reach (DWR) stores in FY27, maintaining a measured pace for DWR.

Holly Hunt Repositioning Efforts

The Holly Hunt brand within Global Retail faced challenges in FY26 due to lagging demand patterns and operational inefficiencies. In response, MillerKnoll has implemented restructuring actions to align costs with demand and strengthen leadership to enhance commercial execution. The goal is to reposition the ultra-premium brand for long-term success and improved performance, while preserving its strong market position.

North America Contract Demand Signals

Despite macro uncertainty, the North America Contract segment is seeing encouraging demand signals. Internal forward demand indicators, including the full-year funnel, value of projects won, and backlogs, showed both year-over-year and sequential improvement. Traffic and showroom visits during design events were up, and healthy leasing demand for Class A spaces reflects continued demand for the higher-quality environments MillerKnoll serves.

International Contract Headwinds and Strengths

The International Contract segment was impacted by global geopolitical concerns, leading to lower order activity in core markets like parts of Europe, the UK, and Latin America. However, the company observed ongoing signs of strength in key Asian markets, Central and Eastern Europe, and China and India.

Management is focused on a strategic approach to target these growth opportunities and manage costs disciplinedly, including expanding dealer relationships in key markets.

Pricing and Cost Management Dynamics

MillerKnoll has maintained a slightly favorable price-cost dynamic in Q4 FY26 and Q1 FY27. This was achieved by capturing tariff-related offsets, implementing a standard list price increase in April for contract and retail businesses, and introducing an inflation surcharge in June. An international list price increase is also planned for September, demonstrating a consistent playbook for navigating cost pressures.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.