MillerKnoll Inc. (NASDAQ:MLKN) shares traded sharply lower in Thursday’s premarket session after the company reported third-quarter fiscal 2026 results that missed expectations and issued a softer-than-expected outlook.

Earnings Miss Expectations

Net sales rose 5.8% year over year to $926.6 million, falling short of the $942.0 million consensus estimate.

Segment performance was mixed. North America Contract revenue increased 4.4% to $488.6 million, while International Contract revenue grew 7.8% to $156.9 million. Global Retail sales climbed 7.1% to $281.1 million.

Orders rose 9.2% year over year, or 7.2% on an organic basis, reaching $931.6 million, supported by strength in North America Contract and Global Retail.

Adjusted operating margin declined to 5.7% from 6.6% a year earlier. Adjusted earnings came in at 43 cents per share, missing the 45-cent consensus estimate.

As of Feb. 28, 2026, the company reported $594.0 million in cash and available capacity under its revolving credit facility.

Outlook Signals Pressure

For the fourth quarter, MillerKnoll expects net sales between $955 million and $995 million, compared with the Street view of $993.2 million. The company guided adjusted earnings to 49 cents to 55 cents per share, below the 61-cent consensus estimate.

The company expects a direct $8 million to $9 million impact from the Middle East conflict, driven by limited shipments and higher logistics costs. It also anticipates $3.5 million to $4.5 million in expenses tied to new store investments, including three to four planned openings in the quarter.

MillerKnoll said incremental tariff costs are expected to be offset by previously disclosed pricing actions.

“Despite ongoing macroeconomic and geopolitical uncertainty, as well as weather-related impacts during the quarter, our team remained focused on disciplined execution and operational priorities within our control.

“We remain well positioned to drive profitable growth and create long-term value across our collective of brands through sustained revenue growth, margin expansion, cash generation and shareholder returns,” said President and Chief Executive Officer Andi Owen.

MLKN Price Action: MillerKnoll shares were down 18.38% at $15.80 during premarket trading on Thursday, according to Benzinga Pro data.

Photo via Shutterstock