The action is in the floor plan
MillerKnoll returns to growth, driven by North America contract business
MillerKnoll is back on a growth path. But the real momentum clearly comes from contract. In the third quarter of fiscal 2026, the company increased net sales to $926.6 million, up 5.8% (3.8% organic). Orders grew even faster, rising 9.2% to $931.6 million, driven primarily by North America Contract and the retail segment.
In its core segment, North America Contract, the trend becomes tangible. Net sales reached $488.6 million (+4.4%, organic +4.1%), while orders surged 13.1% (organic +12.8%). At the same time, operating margin improved significantly from 3.6% to 8.6%. This is more than a solid quarter – it signals returning project activity, better utilization, and improved operational efficiency.
International Contract paints a more restrained picture. Net sales increased to $156.9 million (+7.8% reported), but only 1.9% organically. More telling is the order trend: up 0.7% reported, but down 4.3% organically. This suggests that outside North America, the contract market is stabilizing but still lacks real momentum.
At the same time, the retail business continues to recover. Net sales reached $281.1 million (+7.1%), with orders up 7.9%. Most striking is the turnaround in profitability: operating margin moved from –36.0% in the prior year to +2.2%. However, the improvement is less pronounced on an adjusted basis, where margin stands at 2.8%, below last year’s 6.2%, impacted by new store openings, promotions, and cost pressures.
At group level, the same pattern holds. Operating margin improved to 4.8% from –9.4% a year ago, while adjusted operating margin declined to 5.7% from 6.6%. Earnings per share show a similar split: reported EPS rose to $0.34 (from –$0.19), while adjusted EPS came in slightly below last year at $0.43.
MillerKnoll is back on a growth path. But the real momentum clearly comes from contract. In the third quarter of fiscal 2026, the company increased net sales to $926.6 million, up 5.8% (3.8% organic). Orders grew even faster, rising 9.2% to $931.6 million, driven primarily by North America Contract and the retail segment.
In its core segment, North America Contract, the trend becomes tangible. Net sales reached $488.6 million (+4.4%, organic +4.1%), while orders surged 13.1% (organic +12.8%). At the same time, operating margin improved significantly from 3.6% to 8.6%. This is more than a solid quarter – it signals returning project activity, better utilization, and improved operational efficiency.
International Contract paints a more restrained picture. Net sales increased to $156.9 million (+7.8% reported), but only 1.9% organically. More telling is the order trend: up 0.7% reported, but down 4.3% organically. This suggests that outside North America, the contract market is stabilizing but still lacks real momentum.
At the same time, the retail business continues to recover. Net sales reached $281.1 million (+7.1%), with orders up 7.9%. Most striking is the turnaround in profitability: operating margin moved from –36.0% in the prior year to +2.2%. However, the improvement is less pronounced on an adjusted basis, where margin stands at 2.8%, below last year’s 6.2%, impacted by new store openings, promotions, and cost pressures.
At group level, the same pattern holds. Operating margin improved to 4.8% from –9.4% a year ago, while adjusted operating margin declined to 5.7% from 6.6%. Earnings per share show a similar split: reported EPS rose to $0.34 (from –$0.19), while adjusted EPS came in slightly below last year at $0.43.