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1. Company Snapshot

1.a. Company Description

MillerKnoll, Inc.researches, designs, manufactures, and distributes interior furnishings worldwide.The company operates in four segments: Americas Contract, International Contract, Global Retail, and Knoll.


It offers office furniture products under the Aeron, Mirra, Sayl, Embody, Layout Studio, Imagine Desking System, Ratio, Cosm, Tone, and Generation by Knoll names; and other seating and storage products and ergonomic accessories under the About A Chair, Palissade, Eero Saarinen designs, Barcelona, and the Flo monitor arm names.The company also offers office seating, office furniture systems, other freestanding furniture elements, textiles, leather, felt, home furnishings and related services, casegoods, storage products, as well as residential, education, and healthcare furniture solutions.As of May 28, 2022, the company operated 70 retail studios including 35 operates under the DWR brand, 7 under the HAY brand, 22 Herman Miller stores, 2 Muuto stores, 3 Knoll stores, and a multi-brand Chicago store.


Its products are used in institutional, health/science, and residential and other environments; transportation terminals; and industrial and educational settings.The company markets its products through its sales staff, and independent dealers and retailers, as well as e-commerce websites.The company was formerly known as Herman Miller, Inc.


and changed its name to MillerKnoll, Inc.in November 2021.MillerKnoll, Inc.


was incorporated in 1905 and is headquartered in Zeeland, Michigan.

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1.b. Last Insights on MLKN

MillerKnoll's recent performance was driven by strong Q4 earnings, beating estimates with $0.60 per share, and a solid revenue growth. The company's retail expansion, new product launches, and improving office utilization are key growth drivers. A new Chicago flagship experience was unveiled, enhancing brand visibility. With a 3.78% dividend yield and attractive valuation, the company is poised for growth. Tariff headwinds are expected, but pricing actions and operating leverage should drive recovery. A cautious outlook remains due to high-interest rates.

1.c. Company Highlights

2. MillerKnoll's Strong Q2 Results Exceed Expectations

MillerKnoll, Inc. delivered a robust second quarter, with adjusted earnings per share (EPS) of $0.43, surpassing expectations of $0.4067. Consolidated net sales for the quarter were $955 million, down 1.6% year over year on a reported basis and 2.5% lower organically. Despite the decline in sales, orders for the quarter grew to $973 million, up 5.5% as reported and 4.5% higher on an organic basis. The company's gross margin was a strong 39%, driven by a favorable channel and product mix, as well as effective price realization.

Publication Date: Dec -20

📋 Highlights
  • Strong Q2 Performance: Exceeded expectations with $955M net sales and $0.43 adjusted EPS, driven by 5.5% order growth ($973M) and 39% gross margin.
  • Retail Momentum: North America retail orders rose 8% YoY, with DWR setting in-store and online order records, and 8% comparable sales growth.
  • Contract Business Growth: Orders up 4.5% organically, supported by return-to-office trends, improved leasing activity, and 2-3% pricing/volume growth.
  • Store Expansion Strategy: Opened 4 new stores in Q2, targeting 14-16 annually, with 14-16 leases signed through FY2027, aiming for accretive operating income by FY2027.
  • Q3 Guidance: Projects $923M–$963M sales (7.6% YoY growth at midpoint), 37.9–38.9% gross margin, and $300M–$310M adjusted expenses.

Segment Performance

The Global Retail segment saw a 6% year-over-year increase in orders, with sales up 5% and comparable sales growth of 3.5%. North America retail orders were up 8%, with comparable sales growth also at 8%. The Contract businesses continued to build momentum, driven by the return to office trend, with orders, industry benchmarks, and dealer sentiment all up this quarter. As Andi Owen noted, "organizations prioritize bringing employees together and refreshing their workspaces," driving demand for commercial real estate, design services, and contract furniture.

Guidance and Outlook

For the third quarter, MillerKnoll expects net sales to range between $923 million and $963 million, up 7.6% versus the prior year at the midpoint. Gross margin is projected to be between 37.9% and 38.9%. The company's proactive mitigation actions are expected to fully offset tariff costs in the second half of the fiscal year. Analysts estimate revenue growth of 5.9% for the next year, indicating a positive outlook for the company.

Valuation

With a current P/E Ratio of -49.05 and a P/S Ratio of 0.33, MillerKnoll's valuation appears reasonable considering its growth prospects. The company's Return on Invested Capital (ROIC) is 12.6%, indicating efficient use of capital. The Dividend Yield is 4.13%, providing a relatively stable source of return for investors. As the company continues to execute its growth strategy and navigate the evolving market landscape, its valuation metrics will be closely watched by investors.

3. NewsRoom

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MillerKnoll Recognized as one of the Fortune World's Most Admired Companies 2026

Jan -21

Source: prnewswire.com

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MillerKnoll, Inc. $MLKN Stake Raised by SG Americas Securities LLC

Jan -19

Source: defenseworld.net

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MillerKnoll Appoints Former J. Jill CEO Claire Spofford to Board of Directors

Jan -16

Source: prnewswire.com

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3 Furniture Stocks in Focus Amid Prospering Industry Trends

Jan -06

Source: zacks.com

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Deprince Race & Zollo Inc. Raises Stock Holdings in MillerKnoll, Inc. $MLKN

Dec -28

Source: defenseworld.net

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MillerKnoll Q2 Review: Signs Of A Turnaround Are Here (Rating Upgrade)

Dec -18

Source: seekingalpha.com

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Stock Market Today: S&P 500, Nasdaq Futures Gain, Dow Flat—Accenture, Micron Technologies And FedEx In Focus

Dec -18

Source: feeds.benzinga.com

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Accenture, Micron Technology And 3 Stocks To Watch Heading Into Thursday

Dec -18

Source: feeds.benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.75%)

6. Segments

Americas Contract

Expected Growth: 2.5%

MillerKnoll's Americas Contract segment growth of 2.5% is driven by increasing demand for office furniture and technology integration, fueled by the return-to-office trend and hybrid work arrangements. Additionally, the company's strategic acquisitions and investments in digital capabilities have enhanced its product offerings and customer experience, contributing to the segment's growth.

Global Retail

Expected Growth: 2.8%

MillerKnoll's Global Retail segment growth of 2.8% is driven by increasing demand for ergonomic and sustainable office furniture, expansion into emerging markets, and strategic partnerships with architects and designers. Additionally, the rise of hybrid workspaces and investments in digital sales platforms contribute to the segment's growth.

International Contract and Specialty

Expected Growth: 3.2%

MillerKnoll's International Contract and Specialty segment growth of 3.2% is driven by increasing demand for premium office furniture, strategic partnerships, and expansion into emerging markets. Additionally, the company's focus on sustainable and ergonomic products, as well as its strong brand reputation, contribute to its growth momentum.

7. Detailed Products

Herman Miller Seating

Ergonomic and adjustable chairs for office and home use

Steelcase Workspaces

Modular and flexible workstations for open offices and collaborative spaces

Knoll Textiles

High-quality fabrics and textiles for upholstery and interior design

Holly Hunt Furniture

Luxury furniture and decor for high-end residential and commercial spaces

Muuto Furniture

Scandinavian-inspired furniture for modern homes and offices

Fully Integrated Solutions

Customized and integrated furniture solutions for corporate, education, and healthcare environments

8. MillerKnoll, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for MillerKnoll, Inc. is medium due to the presence of alternative furniture manufacturers and online retailers.

Bargaining Power Of Customers

The bargaining power of customers is high due to the large number of competitors in the furniture industry, giving customers a wide range of options.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and ability to negotiate better prices with suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the moderate barriers to entry in the furniture industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high due to the large number of competitors in the furniture industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.61%
Debt Cost 4.16%
Equity Weight 43.39%
Equity Cost 10.21%
WACC 6.78%
Leverage 130.48%

11. Quality Control: MillerKnoll, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bassett Furniture

A-Score: 5.1/10

Value: 5.8

Growth: 1.3

Quality: 4.2

Yield: 9.0

Momentum: 5.0

Volatility: 5.0

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Interface

A-Score: 4.7/10

Value: 5.6

Growth: 5.4

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

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Leggett & Platt

A-Score: 4.3/10

Value: 8.4

Growth: 1.8

Quality: 4.7

Yield: 6.0

Momentum: 1.5

Volatility: 3.3

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American Woodmark

A-Score: 4.1/10

Value: 7.9

Growth: 6.0

Quality: 4.8

Yield: 0.0

Momentum: 1.0

Volatility: 4.7

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Lifetime Brands

A-Score: 3.9/10

Value: 8.0

Growth: 2.2

Quality: 2.9

Yield: 6.0

Momentum: 2.0

Volatility: 2.3

1-Year Total Return ->

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MillerKnoll

A-Score: 3.8/10

Value: 6.7

Growth: 3.6

Quality: 2.4

Yield: 4.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.07$

Current Price

22.07$

Potential

-0.00%

Expected Cash-Flows