MillerKnoll Inc. (NASDAQ: MLKN) is a furniture design and manufacturing company with a diverse portfolio of brands, including Herman Miller and Knoll. The company reported its third-quarter fiscal 2025 results for the period ending March 1, 2025.

For this quarter, consolidated net sales reached $876.2 million, reflecting a year-over-year increase of 0.4% and a 1.8% increase on an organic basis. Consolidated orders totaled $853.1 million, which represents a 2.7% increase year-over-year and a 4.1% organic rise. The consolidated backlog rose to $686.4 million, up 7.4% from the previous year.

MillerKnoll experienced mixed results across its reporting segments. In the North America Contract segment, net sales totaled $468.2 million, a 1.4% increase year-over-year, while new orders stood at $434 million, reflecting a drop of 1.8% compared to the prior year. The operating margin decreased to 3.6%, down from 5.5% in the previous year’s quarter. Nonetheless, the adjusted operating margin improved to 9.1%, an 80 basis point increase compared to the same period last year.

In the International Contract segment, net sales declined by 5.0% to $145.5 million, with new orders at $159.2 million, a slight decline of 1.6% reported but an organic rise of 1.4%. Operating margin fell to 6.8%, compared to 11.4% a year earlier, with an adjusted operating margin of 9.3%, down 260 basis points from the prior year.

The Global Retail segment demonstrated stronger performance, with net sales at $262.5 million, growing 1.9% year-over-year. New orders in this segment increased by 14.7% as reported and 16.9% on an organic basis, although the operating margin reflected a critical loss of 36.0% due to impairment charges. Excluding those, the adjusted operating margin was 6.2%, up 80 basis points compared to last year.

MillerKnoll reported a loss per share of $0.19 for the quarter, in contrast to earnings per share of $0.30 recorded in the prior year. Adjusted earnings per share were $0.44, slightly declining from $0.45 year-over-year. In terms of operating expenses, the company reported $414.6 million, which is a significant increase from $294.2 million a year ago, with adjusted operating expenses decreasing 1.6% to $274.4 million.

For the upcoming fourth quarter of fiscal 2025, MillerKnoll expects net sales between $910 million and $950 million, representing a midpoint growth of 4.6% compared to the prior year’s results. The anticipated gross margin is projected between 37.5% and 38.5%, with adjusted diluted earnings per share ranging from $0.46 to $0.52. The guidance accounts for estimated tariff-related costs of $5 million to $7 million before tax, expected to impact EPS by $0.05 to $0.07. The results reflect the company’s management of macroeconomic uncertainty and proactive cost actions amid a fluctuating business environment.