In a remarkable shift, design furniture giant MillerKnoll has reported a return to profitability in its fiscal fourth quarter, defying a challenging global economic landscape. The company, known for its portfolio of iconic brands such as Knoll and Herman Miller, posted a net profit of $23.6 million, a significant improvement from the $57.1 million loss recorded in the same period last year. This strong financial performance was primarily fueled by an enhanced North American contract business and expanding global retail sales, exceeding market forecasts and sending its stock soaring.
During the three-month period concluding on May 30, MillerKnoll’s sales reached an impressive $1 billion, marking a 4.4% increase compared to the fiscal fourth quarter of the preceding year. This figure comfortably surpassed analyst projections of $973.9 million, showcasing the company's resilient market position. Earnings per share stood at 55 cents, outperforming analyst estimates by 6.8%. Annually, net sales climbed 4.7% to $3.84 billion, underscoring consistent growth. Following these positive results, MillerKnoll's board of directors declared a quarterly cash dividend of 18.75 cents per share, payable on July 15, which contributed to an over 18% surge in the company's shares during Thursday's trading.
The company experienced an 8% increase in North American sales, while its overall global sales grew by 5.5% to $295.3 million. This global growth was notably bolstered by heightened demand for its renowned products from brands like Knoll and Herman Miller. Despite economic headwinds such as inflation and rising energy costs impacting markets in Europe, the U.K., and Ireland, the Middle East region demonstrated unexpectedly strong performance. Interim CEO Jeff Stutz highlighted the Middle East's outperformance, stating, "Ironically the order performance in the Middle East for our business exceeded our expectations coming into the quarter. To the Middle East itself, we shipped more into the region than we thought and took more orders." He further expressed optimism for the region, anticipating its continued role as a key growth area for the company.
The firm's contract sales presented a mixed picture amidst a boom in new construction, branded residences, and hospitality sectors. While its North American contract division saw sales rise by 6.9% to $530.2 million, the international contract business experienced a slight decline of 3.8% to $178.7 million. MillerKnoll remains focused on debt reduction, with its current debt standing at $1.26 billion. Looking ahead, the company forecasts first fiscal quarter 2027 sales to be between $928 million and $968 million, and full-year sales to range from $3.93 billion to $4.13 billion. This marks the first time since the COVID-19 pandemic that the company has provided a full-year outlook, which analyst Philip Blee from William Blair described as conservative, suggesting potential for upside if strong pre-order activity and recent price adjustments continue to drive faster sales growth throughout the year.
The company also recently saw a leadership transition, with Andi Owen stepping down on June 2. Owen, who joined Herman Miller in 2018 and was instrumental in the $1.8 billion merger of Herman Miller and Knoll in 2021, handed over leadership at a pivotal moment. MillerKnoll had faced a challenging period, with its Nasdaq-listed shares reaching a five-year low in November 2025, largely due to macroeconomic pressures including trade policies, inflation, and increased shipping expenses. Despite these past challenges, the company's latest financial results indicate a strong recovery and a positive trajectory for its future endeavors.
