MillerKnoll (MLKN) investor relations material

Executive summary

• Q1 FY2027 net sales were $923.4 million, down 3.4% year-over-year, while orders increased 3.2% to $913.9 million, with softness in North America Contract and Global Retail but strong order growth in International Contract and Global Retail.

• Adjusted EPS was $0.53, or $0.42 excluding a $0.11 per share net benefit from tariff refunds, exceeding guidance due to disciplined execution and cost management.

• Gross margin rose to 41.7% (41.8% adjusted), up 320–330 bps year-over-year, aided by $16.5 million in tariff refunds.

• Internal demand indicators and project funnel additions were up year-over-year, with optimism for future growth despite current revenue headwinds.

• Q1 earnings exceeded expectations, driven by cost discipline and balance sheet strengthening.

Financial highlights

• Consolidated net sales: $923.4 million, down 3.4% year-over-year; consolidated orders: $913.9 million, up 3.2%.

• Adjusted operating margin improved to 7.1% from 6.3% year-over-year.

• Cash flow from operations was $49.1 million; quarter-end cash balance was $179 million.

• Net debt to EBITDA ratio: 2.75x; available liquidity: $580 million.

• Quarterly dividend declared: $0.1875 per share, annual yield 3.7%.

Outlook and guidance

• Q2 FY2027 net sales expected at $972 million–$1.012 billion; adjusted EPS: $0.43–$0.49; gross margin guidance: 38.3%–39.3%.

• FY2027 net sales guidance lowered to $3.88 billion–$4.03 billion; adjusted EPS maintained at $1.85–$2.15.

• Guidance includes $0.07 per share negative impact from new U.S.-Canada tariffs and $6 million per quarter in incremental new store expenses.

• Plans to open 14–18 new retail stores in FY2027, with 5–7 in Q2.