MillerKnoll Inc. has reported its financial results for the first quarter of fiscal year 2026, which ended on August 30, 2025. The company's net sales for the quarter were $955.7 million, representing a 10.9% increase from the same period last year. The gross margin percentage decreased from 39.0% to 38.5%, a 0.5% decrease.
Operating expenses decreased to $314.6 million from $321.1 million, marking a 2.0% decrease. However, adjusted operating expenses increased to $308.0 million from $286.9 million, indicating a 7.4% increase.
The operating earnings percentage surged from 1.8% to 5.6%, representing a 211.1% increase. Similarly, the adjusted operating earnings percentage rose from 5.8% to 6.3%, an 8.6% increase. Earnings per share * diluted also improved from $(0.02) to $0.29, a significant positive change of N/A.
In terms of segment performance, the North America contract segment saw a 12.1% increase in net sales, while the International contract and Global retail segments reported 14.4% and 6.4% increases, respectively.
Looking at the second quarter of fiscal 2026, the company expects net sales to be in the range of $926 million to $966 million, with a gross margin percentage of 37.6% to 38.6%. The adjusted operating expenses are projected to be in the range of $300 million to $310 million.
The company's liquidity as of August 30, 2025, stood at $480.5 million, reflecting cash on hand and revolving credit facility availability. MillerKnoll Inc. also issued a $550 million term loan B during the quarter, replacing the existing term loan B and extending the maturity date by four years to 2032.
Overall, the company's first quarter results reflect strong revenue and earnings growth, improved operating margins, and positive segment performance, setting a promising tone for the remainder of fiscal year 2026.
Today the company's shares have moved -2.31% to a price of $19.44. For more information, read the company's full 8-K submission here.
