MILLERKNOLL, INC.

MillerKnoll operates in the global interior furnishings industry, designing, manufacturing, and distributing products for residential, office, healthcare, and educational settings. The industry is highly competitive, with competition based on design, product and service quality, speed of delivery, and product pricing. The company's products are sold through independent contract furniture dealers, direct customer sales, owned and independent retailers, direct-mail catalogs, and eCommerce platforms. Approximately 53.6% ¹ of sales in fiscal 2026 were made through independent dealers, with the remainder through direct sales, retail channels, or independent retailers.

The company is one of the largest furniture manufacturers in the world. Its most significant competitors are Haworth and HNI Corporation. In the home furnishings industry, it competes with Arhaus, Inc., Crate & Barrel Holdings, Inc., RH, Room & Board, Inc., Wayfair Inc., and Williams-Sonoma, Inc. Competitive advantages include brand recognition, design excellence, intellectual property rights, and customer-centered technologies. The company estimates that no single independent dealer accounted for more than 2% ² of net sales in fiscal 2026, and its ten largest customers in aggregate accounted for approximately 16% ³ of net sales in fiscal 2026.

MillerKnoll generates revenue through the research, design, manufacture, sale, and distribution of seating products, furniture systems, freestanding furniture, textiles, leather, felt, home furnishings, and related services. Revenue is primarily transactional, derived from product sales to end-users, dealers, and retailers across contract and retail channels. The company serves institutional environments (offices, healthcare, education), residential customers, and public spaces. Its brands include Herman Miller, Knoll, Design Within Reach, HAY, Muuto, and others, forming a collective of design brands.

The company operates three reportable segments: North America Contract, International Contract, and Global Retail. North America Contract includes workplace, performance seating, lifestyle, and other products sold to commercial and institutional customers in the U.S. and Canada. International Contract covers similar product categories sold in markets including Europe, the Middle East, Africa, Latin America, and Asia Pacific. Global Retail encompasses sales through owned retail stores (Herman Miller, Design Within Reach, HAY, Knoll, Muuto), eCommerce platforms, and independent retailers, serving residential and small-business customers. The company also reports a corporate category for unallocated expenses.

In fiscal 2026, the company spent approximately $66.7 million ⁴ on design and research activities, compared to $60.7 million ⁵ in fiscal 2025 and $62.0 million ⁶ in fiscal 2024. As of May 30, 2026, the backlog of unfilled orders was $678.8 million ⁷, down from $761.3 million ⁸ at May 31, 2025. The company had approximately 10,544 ⁹ employees as of May 30, 2026, with about 2% ¹⁰ covered by collective bargaining agreements. In June 2026, the company announced the departure of its President and Chief Executive Officer and the appointment of its Chief Operating Officer as Interim Chief Executive Officer while the Board conducts a search for a permanent successor.

Total net sales for fiscal 2026 were $3.648 billion ¹¹, compared to $3.649 billion ¹² in fiscal 2025 and $3.617 billion ¹³ in fiscal 2024. Net earnings in fiscal 2026 were $117.8 million ¹⁴, compared to $131.6 million ¹⁵ in fiscal 2025 and $143.7 million ¹⁶ in fiscal 2024. Diluted earnings per share were $1.70 ¹⁷ in fiscal 2026, $1.89 ¹⁸ in fiscal 2025, and $2.06 ¹⁹ in fiscal 2024. Operating earnings were $175.5 million ²⁰ in fiscal 2026, compared to $199.0 million ²¹ in fiscal 2025 and $213.0 million ²² in fiscal 2024.

The company's growth strategy focuses on taking advantage of the changing composition of the office floor plate, greater customer demand for customization, new technologies, and trends toward urbanization and working from home. The company believes it will be required to continually invest in research, design, and development of new products and services to meet its goals, though there is no assurance such investments will have commercially successful results. Growth opportunities may also require investments in acquisitions, alliances, and startup of new business ventures, which may not perform according to plan.

The company is pursuing expansion in new and adjacent markets, as well as within developing economies, which will require finding effective new channels of distribution. There is no assurance that the company can identify or develop these channels. International operations expose the company to complex, changing, and inconsistently-applied legal and regulatory requirements, and failure to remain compliant could limit the ability to continue doing business in those locations. The company conducts business in major international markets including Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific region.

Execution of the company's sustainability strategy and efforts to comply with new environmental regulations have increased, and are expected to continue to increase costs. The company seeks to reduce the environmental impact of its global operations and design products with materials and processes that support its sustainability objectives. Increased focus by overseas governmental authorities on environmental matters is likely to lead to new governmental initiatives, particularly in the area of climate change, which may impact the business both directly and indirectly.

The company uses temporary labor to meet fluctuating demand in its manufacturing operations. Manufacturing materials are available from sources within North America, South America, Europe, and Asia. The costs of certain direct materials, including steel, plastic, aluminum components, and particleboard, are sensitive to commodity market prices, and increases in these prices can have an adverse impact on profitability.

The company spent approximately $66.7 million ²³ on design and research activities in fiscal 2026. The filing does not disclose specific capital expenditure plans, share repurchase authorization amounts, or dividend policy figures for the upcoming period.

Declines in consumer spending on furnishings could reduce demand for the company's products, particularly in the Global Retail segment, which is sensitive to factors including general economic conditions and consumer disposable income. Fluctuating exchange rates and factors beyond the company's control, such as tariff and foreign economic policies, may affect future results of international operations.

The company's executive leadership transition, announced in June 2026 with the departure of the President and Chief Executive Officer and appointment of an Interim Chief Executive Officer, may create uncertainty among employees, customers, dealers, suppliers, investors, and other stakeholders, and could disrupt management focus or delay decision-making. If the company is unable to complete an effective transition or retain key leaders, its business, results of operations, and financial condition could be adversely affected.

The company faces risks from its growth strategy execution, which may not deliver projected results due to inadequate execution, incorrect assumptions, or changing customer requirements. The executive leadership transition announced in June 2026, with the departure of the President and Chief Executive Officer, could disrupt management focus and create uncertainty among stakeholders. Declines in consumer spending on furnishings, driven by general economic conditions and consumer disposable income, could reduce demand, particularly in the Global Retail segment. Fluctuating exchange rates and tariff policies may affect international operations, which are conducted in Canada, Europe, the Middle East, Africa, Latin America, and Asia Pacific. The costs of direct materials such as steel, plastic, aluminum, and particleboard are sensitive to commodity market prices, and increases can adversely impact profitability. The company's ten largest customers accounted for approximately 16% ²⁴ of net sales in fiscal 2026, indicating customer concentration risk.

Management's message emphasizes that MillerKnoll is a collective of dynamic brands that designs the world we live in, with design as a tool for creating positive impact. The company is focused on redefining modern for the 21st century, shaping a future that is more sustainable, caring, and beautiful. Key strategic priorities include taking advantage of the changing composition of the office floor plate, greater customization demand, new technologies, and trends toward urbanization and working from home. Management acknowledges the need to continually invest in research, design, and development of new products and services, and that growth opportunities may require acquisitions, alliances, and new business ventures.