MillerKnoll delivered a resilient quarterly top line in Q3 FY2025 with consolidated net sales of $876.2 million, up modestly year over year on a reported basis and 1.8% organically, supported by a substantial uptick in Global Retail orders. However, the quarter was significantly impacted by non-cash impairment charges and restructuring costs that produced a GAAP net loss of $12.7 million and an EPS of -$0.19. Management’s narrative emphasizes the durability of a diversified business model and disciplined cost control as the key protectors of long‑term growth in a volatile macro environment. The company also highlighted a segment reorganization (North America Contract, International Contract, and Global Retail) as a pathway to improved visibility, with ongoing investments in product cadence, retail footprint expansion, and tariff mitigation strategies.
Looking forward, MillerKnoll guided for Q4 2025 net sales of $910–$950 million with a gross margin of 37.5–38.5% and adjusted diluted EPS of $0.46–$0.52. Tariff-related costs are expected to be $5–$7 million pre-tax (~$0.05–$0.07 per share), with management emphasizing continued pricing actions and supply‑chain flexibility to offset volatility. The balance sheet remains solid with cash of $169.8 million, net debt to EBITDA at 2.93x, and available liquidity of $468 million, which supports ongoing investments in growth initiatives and selective share repurchases. The quarter’s impairment charges (notably Holly Hunt and Global Retail) underscore the ongoing need to align the cost structure with demand dynamics, even as orders and backlog show positive momentum in Retail and International segments. Investors should weigh the synchronized upside from backlog expansion and retail growth against profitability headwinds from impairments and tariff uncertainty.