Download PDF

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.

Show Full description

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 Q1 Results Exceed Expectations

MillerKnoll's Q1 results significantly exceeded expectations, with consolidated net sales growing almost 11% to $956 million and adjusted EPS increasing 25% to $0.45. The strong performance was driven by better-than-expected sales and gross margin performance. The company's global retail business also showed strength, with net sales in North America up 7% compared to last year. The adjusted earnings per share of $0.45 was significantly ahead of estimates of $0.35, highlighting the company's robust execution and improving market conditions.

Publication Date: Oct -28

📋 Highlights
  • Q1 Financial Outperformance:: Consolidated net sales rose 11% to $956 million, with adjusted EPS up 25% to $0.45, exceeding guidance and prior-year results.
  • Contract Business Momentum:: North America and international contract preorder funnels grew year-over-year, with North America Contract segment averaging 3.3% growth between Q4 and Q1.
  • Retail Sales & Expansion:: North America retail net sales increased 7%, supported by 12–15 planned new U.S. stores over several years and 4 new stores opened in Q1.
  • Margin Performance:: Gross margin stabilized despite tariffs ($8M Q1 impact), with 37.6–38.6% guidance for Q2 and pricing mitigation efforts reducing tariff costs to $2–4M.

Segment Performance

The company's contract businesses saw growth momentum building, with more companies recognizing the benefit of refreshing their spaces. Office leasing activity for class A space continues to be robust in many markets, and orders in the industry and dealer optimism are up. The North America Contract segment averaged 3.3% growth over the two quarters between Q4 and Q1, driven by volume rather than price. The underlying demand was more positive during the quarter, and the trend is expected to continue.

Guidance and Outlook

For Q2, MillerKnoll expects net sales to range between $926 million to $966 million, down 2.5% versus prior year at the midpoint of $946 million. The company expects sales for 2026 to be up approximately 3.8% at the midpoint. Gross margin is expected to range between 37.6% and 38.6%. Adjusted diluted earnings are expected to range between $0.38 and $0.44 per share. Analysts estimate next year's revenue growth at 4.7%, which is slightly higher than the company's current guidance.

Valuation Metrics

With a P/E Ratio of -75.37, the stock appears to be overvalued. However, the P/S Ratio of 0.31 and EV/EBITDA of 14.44 suggest a more reasonable valuation. The Dividend Yield of 4.4% and Free Cash Flow Yield of 7.01% are attractive, indicating a decent return for investors. The ROE of -1.19% and ROIC of -3.65% raise concerns about the company's profitability. The Net Debt / EBITDA ratio of 8.48 indicates a relatively high debt burden.

Operational Highlights

The company opened four stores during the quarter and anticipates opening a total of 12 to 15 new stores in the US over the next several years. The new store expenses will impact the bottom line in Q1, Q2, and Q3 but are expected to contribute positively in Q4 and next year, as explained by Kevin Veltman. The company is also seeing a rebound in international markets, particularly with DTC sales and lower-priced brands like Hay and Mitchell.

3. NewsRoom

Card image cap

MillerKnoll Schedules Second Quarter Fiscal Year 2026 Conference Call and Webcast

Nov -19

Source: prnewswire.com

Card image cap

5 Undervalued Stocks That Are Poised for Growth in November

Nov -13

Source: zacks.com

Card image cap

MLKN vs. BSET: Which Stock Should Value Investors Buy Now?

Nov -10

Source: zacks.com

Card image cap

Is the Options Market Predicting a Spike in MillerKnoll Stock?

Nov -08

Source: zacks.com

Card image cap

Down 11.3% in 4 Weeks, Here's Why You Should You Buy the Dip in MillerKnoll (MLKN)

Oct -31

Source: zacks.com

Card image cap

Best Income Stocks to Buy for Oct. 17th

Oct -17

Source: zacks.com

Card image cap

Down 19.4% in 4 Weeks, Here's Why MillerKnoll (MLKN) Looks Ripe for a Turnaround

Oct -08

Source: zacks.com

Card image cap

Trump's New Furniture Tariffs Are Lifting Some Stocks, Dragging Down Others

Sep -26

Source: investopedia.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: 5.4/10

Value: 5.9

Growth: 1.3

Quality: 4.4

Yield: 9.0

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Interface

A-Score: 4.9/10

Value: 5.5

Growth: 5.4

Quality: 5.7

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Leggett & Platt

A-Score: 4.4/10

Value: 9.6

Growth: 1.8

Quality: 4.7

Yield: 6.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
American Woodmark

A-Score: 4.0/10

Value: 7.0

Growth: 6.0

Quality: 4.9

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
MillerKnoll

A-Score: 3.9/10

Value: 7.3

Growth: 3.6

Quality: 2.4

Yield: 4.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Lifetime Brands

A-Score: 3.8/10

Value: 8.1

Growth: 2.2

Quality: 2.3

Yield: 7.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.97$

Current Price

15.97$

Potential

-0.00%

Expected Cash-Flows