MillerKnoll’s first quarter performance disappointed the market, with results falling short of Wall Street’s expectations. Management attributed underperformance primarily to severe winter weather, which led to lower retail traffic and temporary store closures, particularly impacting its North America Retail segment. CEO Andi Owen highlighted that operational disruptions also extended to some manufacturing facilities, further weighing on revenue. Despite these challenges, order growth in North America Contract and ongoing execution of margin improvement initiatives provided some support to overall results. Management was candid about the adverse weather’s impact, noting, “A little under half of [the top-line miss] was related to our North America Retail business.”
Is now the time to buy MLKN? Find out in our full research report (it’s free for active Edge members).
MillerKnoll (MLKN) Q1 CY2026 Highlights:
- Revenue: $926.6 million vs analyst estimates of $942 million (5.8% year-on-year growth, 1.6% miss)
- Adjusted EPS: $0.43 vs analyst expectations of $0.45 (4.4% miss)
- Adjusted EBITDA: $91.1 million vs analyst estimates of $93.74 million (9.8% margin, 2.8% miss)
- Revenue Guidance for Q2 CY2026 is $975 million at the midpoint, below analyst estimates of $993.2 million
- Adjusted EPS guidance for Q2 CY2026 is $0.52 at the midpoint, below analyst estimates of $0.61
- Operating Margin: 5.1%, in line with the same quarter last year
- Backlog: $711.6 million at quarter end
- Market Capitalization: $988.7 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MillerKnoll’s Q1 Earnings Call
- Doug Lane (Water Tower Research) asked how severe weather affected both retail and contract segments; CEO Andi Owen and CFO Kevin Veltman clarified that most of the impact was on retail and contributed significantly to the revenue miss.
- Olivia Whittie (William Blair) inquired about the potential pullback in contract business due to oil price volatility; Owen and President John Michael explained the company has built caution into forecasts but has not yet seen a major demand slowdown.
- Whittie (William Blair) also questioned trends in federal government sales; Michael said government demand is expected to remain choppy due to shifting funding priorities.
- Reuben Garner (Benchmark Company) sought clarification on the financial impact of Middle East shipping disruptions; Veltman explained that the cost impact is primarily from logistics and may increase if the conflict persists.
- Greg Burns (Sidoti & Company) asked about the sustainability of retail store expansion; Veltman stated the store opening pace should remain steady, with similar incremental costs expected next year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) management’s ability to offset logistics and commodity cost increases tied to the Middle East conflict, (2) the continued pace and effectiveness of new retail store openings and assortment expansion, and (3) order momentum in North America Contract and key international markets. Execution on margin management strategies and adaptability to changing global conditions will also be important signposts.
MillerKnoll currently trades at $14.60, down from $19.36 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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