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October 4, 2025 • 3 min read
MillerKnoll, the global design and furniture giant behind iconic brands like Herman Miller and Knoll, recently released its financial results for the first quarter of fiscal year 2026. To understand the company's current health and trajectory, let's dive into the key numbers from its latest 10-Q filing and see what they reveal about its performance.
For the three months ending August 30, 2025, MillerKnoll reported a significant uptick in business. Total revenue climbed 10.9% year-over-year to $955.7 million. More impressively, this top-line growth translated into a dramatic improvement in profitability. The company swung from a small net loss in the same period last year to a net income of $21.1 million. This resulted in diluted earnings per share of $0.29, a welcome figure for investors.
The following flow diagram provides a visual breakdown of how MillerKnoll generated its revenue and managed its costs during the quarter.
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A closer look at MillerKnoll's business segments reveals where the strength lies. The company operates through three main divisions: North America Contract, International Contract, and Global Retail.
North America Contract: This segment, which serves corporate, healthcare, and government clients, was the star performer. As the company's largest division, it saw revenue grow by 12.1% to $533.9 million. Its operating income was a robust $56.9 million, making it the primary engine of profitability for the company.
International Contract: The international arm also posted strong results, with revenue increasing by 14.4% to $167.5 million and operating income reaching $13.5 million.
Global Retail: This segment, which includes consumer-facing brands like Design Within Reach and HAY, experienced more modest revenue growth of 6.4% to $254.3 million. However, its operating income fell sharply to just $1.4 million. The filing attributes this margin pressure to increased freight costs and investments in expanding its retail store footprint, highlighting a key challenge for the company.
One of the most significant factors in this quarter's improved profitability was MillerKnoll's management of operating expenses. Despite higher sales, total operating expenses actually decreased by 2.0% to $314.6 million.
The main driver was the absence of hefty one-time costs that weighed on last year's results. In the same quarter last year, the company incurred approximately $28 million in integration charges related to its acquisition of Knoll. With those costs now in the rearview mirror, the underlying profitability of the business is much clearer. This improvement was slightly offset by higher compensation and variable selling costs, which are expected with rising sales.
MillerKnoll has kicked off its fiscal year on a very positive note. Strong demand in its core contract furniture business, combined with the disappearance of major integration expenses, has fueled a significant turnaround in profitability.
However, the path forward requires careful navigation. The declining profitability in the Global Retail segment, despite growing sales, indicates that the company is facing margin headwinds in a competitive consumer market. For sustained success, MillerKnoll will need to leverage the strength of its contract business while addressing the cost pressures impacting its retail division.
Last updated: October 4, 2025