MILAN — MillerKnoll, a leading American furniture maker known for its iconic midcentury modern designs, continues to navigate U.S. President Donald Trump’s trade policy in its fiscal full year 2026. As a result, it’s erring on the side of caution when it comes to guidance.
In the fiscal second quarter which ended Nov. 29, the Zeeland, Mich.-based MillerKnoll — whose portfolio includes American brands Knoll, Herman Miller, Design Within Reach and Holly Hunt, as well as Copenhagen-based Muuto and textile firm Maharam — said revenues slipped 1.6 percent to $955.2 million.
Earnings per share were down 28.6 percent to 35 cents, as sales in its North American and international contract business slipped 3.1 percent and 6.3 percent year-on-year, respectively, even as orders rose 4.8 percent in North America. The firm said momentum continues to build in North America and internationally as organizations prioritize bringing employees together and refreshing their workspaces. International orders were driven by Europe, the U.K., China and India.
During the period, MillerKnoll was also was impacted by costs related to the new stores, net tariff costs, and foreign currency. The company recently expanded its retail network with a DWR (Design Within Reach) unit in Salt Lake City, and three Herman Miller stores in Nashville, El Segundo, Calif., and Walnut Creek, Calif.
For the third quarter of 2026, the group expects sales to either rise or fall, setting a range of $923 million at the low end and $963 million, which would be an improvement quarter-on-quarter from $955.2 million, as best-case scenario. Adjusted EPS is expected to either fall to 42 cents from 43 cents in the second quarter, or rise to 48 cents. Gross margin is projected to slip to between 37.9 percent and 38.9 percent from 39 percent in the second quarter. Adjusted operating expense is expected to fall to a range from $300 million to $310 million from $323.7 million.
Knoll’s Biboni couch by Sharon Johnson and Mark Lee.
Courtesy of Knoll
“Turning to our third-quarter guidance, our outlook incorporates the latest information on tariffs and new store investments, as well as the typical seasonal softness in our contract businesses as the calendar year comes to a close and the timing of the Chinese New Year holiday,” the company’s chief financial officer Kevin Veltman said during the conference call on Wednesday.
Looking ahead, the firm will implement proactive mitigation actions to fully offset tariff costs in the second half of its fiscal 2026 year, supporting both gross margin and earnings per share resilience. In July, the company said it would begin implementing new pricing strategy, following President Trump’s announcement on new tariffs.
With about 70 percent of its North America retail’s cost of goods sourced from the U.S., the firm said its pricing is significantly less exposed to tariff risk compared to most competitors. MillerKnoll chief executive officer Andi Owen said the firm’s aim for the full fiscal year is to open 14 to 16 new stores in the U.S., advancing its strategy to double its DWR and Herman Miller store footprint over the next several years.
“As industry trends continue to improve, we are well-positioned to build on this momentum and drive long-term value for our customers and shareholders through ongoing innovation and operational excellence,” Owen said.
MillerKnoll is listed on Nasdaq. In early Thursday trading, its shares were up 0.42 percent to $17.94.
