MillerKnoll Inc. reported its financial results for the third quarter of fiscal year 2025, ending March 1, 2025. Consolidated net sales were $876.2 million, a 0.4% increase on a reported basis and 1.8% organically year-over-year. Orders in the quarter increased by 2.7% reported and 4.1% organically.
The company recorded a diluted loss per share of $0.19 for the quarter, a significant decline from diluted earnings per share of $0.30 in the prior year. Adjusted diluted earnings per share were $0.44, compared to $0.45 in the same period last year. Gross margin for the quarter was 37.9%, down 70 basis points from the prior year, primarily due to unfavorable channel and product mix, lower fixed cost leverage, and higher commodity costs.
During the third quarter, MillerKnoll incurred special charges totaling $140.2 million. This included $4.2 million associated with restructuring actions, which involved a workforce reduction. Additionally, the company recognized non-cash, pre-tax impairment charges of $130.0 million related to goodwill attributed to the Holly Hunt and Global Retail reporting units, as well as the Knoll and Muuto trade names.
Effective March 1, 2025, MillerKnoll also announced a change in its reporting segments to North America Contract, International Contract, and Global Retail, aligning with changes in its organizational structure and long-term growth strategies. The company reduced its long-term debt by $60.7 million during the quarter and repurchased 0.8 million shares for $17.9 million.
For the fourth quarter of fiscal year 2025, MillerKnoll anticipates net sales between $910 million and $950 million, with adjusted diluted earnings per share projected from $0.46 to $0.52. The full-year fiscal 2025 adjusted EPS guidance was lowered to $1.81-$1.87, down from the previous range of $2.11-$2.17, reflecting the impact of macroeconomic uncertainty and tariff-related costs, estimated at $5 million to $7 million before tax for Q4.
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