MillerKnoll's Q3 2025: Navigating Tariff Challenges, Order Growth, and Retail Margins Amid Contradictions
Wednesday, Mar 26, 2025 6:19 pm ET
3min read These are the key contradictions discussed in MillerKnoll's latest 2025 Q3 earnings call, specifically including: Tariff Exposure and Mitigation Strategies, Order Growth Acceleration, and Retail Margin and Growth Strategy:
Diverse Business Model and Macroeconomic Resilience:
- MillerKnoll reported consolidated net sales of $876 million, up 1.8% organically in Q3 2025.
- The company's strong performance in certain markets and a disciplined focus on cost structure helped mitigate softness in other areas, particularly amid unpredictable macroeconomic conditions.
Global Retail Growth:
- Global Retail segment reported net sales of $263 million, up 3.9% organically in Q3 2025.
- The growth was driven by strong demand in North America, with reported orders up nearly 15% and organic orders up 17%.
North America Contract Segment Challenges:
- North America Contract segment reported net sales of $468 million, up 1.7% organically, with a 1.5% organic decrease in new orders.
- Caution in the current environment led to lower-than-expected orders, marked by significant declines in January.
International Contract Segment Variability:
- International Contract segment reported net sales of $146 million, down 1.5% organically in Q3 2025.
- While orders in APMEA, particularly in the Middle East, India, and Japan, showed strength, global trade policy and macroeconomic challenges impacted demand significantly.
Tariff and Cost Management Strategy:
- MillerKnoll announced a 4.5% list price increase effective June 2nd and plans to partner with suppliers to offset cost impacts of tariffs.
- The company anticipates tariff-related costs in Q4 of between $5 million and $7 million before tax, with ongoing efforts to mitigate these impacts.
MLKN Basic EPS, Total Revenue YoY...
| Name |
|---|
| Date |
| Basic EPS(USD) |
| Total Revenue YoY% |
| ROE(Average)% |
| MillerKnollMLKN |
| 2025 Q2 |
| 0.49 |
| 2.20 |
| 2.44 |
Diverse Business Model and Macroeconomic Resilience:
- MillerKnoll reported consolidated net sales of $876 million, up 1.8% organically in Q3 2025.
- The company's strong performance in certain markets and a disciplined focus on cost structure helped mitigate softness in other areas, particularly amid unpredictable macroeconomic conditions.
Global Retail Growth:
- Global Retail segment reported net sales of $263 million, up 3.9% organically in Q3 2025.
- The growth was driven by strong demand in North America, with reported orders up nearly 15% and organic orders up 17%.
North America Contract Segment Challenges:
- North America Contract segment reported net sales of $468 million, up 1.7% organically, with a 1.5% organic decrease in new orders.
- Caution in the current environment led to lower-than-expected orders, marked by significant declines in January.
International Contract Segment Variability:
- International Contract segment reported net sales of $146 million, down 1.5% organically in Q3 2025.
- While orders in APMEA, particularly in the Middle East, India, and Japan, showed strength, global trade policy and macroeconomic challenges impacted demand significantly.
Tariff and Cost Management Strategy:
- MillerKnoll announced a 4.5% list price increase effective June 2nd and plans to partner with suppliers to offset cost impacts of tariffs.
- The company anticipates tariff-related costs in Q4 of between $5 million and $7 million before tax, with ongoing efforts to mitigate these impacts.
Ask Aime: How will MillerKnoll's Q3 2025 earnings call impact the company's stock performance?
