MillerKnoll reported a solid QQ2 2026 performance characterized by resilient demand across contract and retail channels, offset by a modest year-over-year revenue decrease driven by pull-forward activity in North America contract. Revenue came in at $955.2 million, down 1.6% YoY, while quarterly orders rose 5.5% to $973 million and organic orders advanced about 4.5%. Management attributed several offsetting factors to profitability: a strong gross margin of approximately 39% (including roughly $1 million in tariff-related costs) supported by tariff-mitigation actions and favorable mix. Adjusted earnings per share reached $0.43, beating expectations, even as GAAP EBITDA showed a near-term margin compression due to new-store investments and currency effects.
The company underscored a multi-pronged growth trajectory anchored by (1) a rapid expansion of the North American retail footprint (four net new stores opened in the quarter with a full-year target of 14–16 new stores), (2) continued product and assortment innovation (assortment up 22% year-over-year; Noel Dividend Skyline driving select project wins), and (3) a disciplined international push (global showrooms and dealer network expansion, including a Miller North showroom in Shanghai).
Looking ahead, MillerKnoll provided third-quarter guidance: net sales of $923–$963 million, gross margin of 37.9–38.9%, adjusted operating expenses of $300–$310 million, and adjusted diluted EPS of $0.42–$0.48. Tariff mitigation is expected to fully offset tariff impacts in H2. The company also highlighted a structured path to deleveraging toward a 2.0–2.5x net debt to EBITDA range over time and emphasized strong liquidity (~$548 million) and robust cash generation (operating cash flow of $65 million in Q2, $21.3 million of free cash flow).
Overall, the QQ2 results reinforce a constructive but still recovering demand environment for premium office and contract furnishings, with upside potential from sustained return-to-office dynamics, higher-order value from strategic retail investments, and improving international markets. Key risks remain tariff volatility, macro headwinds, and the execution cadence around rapid store expansion.