The gross margin for the quarter was reported at 38.1%, a slight increase from 37.9% in the previous year. Operating expenses decreased to $308.0 million, contributing to an operating margin of 4.8%, a significant improvement from the negative margin of 9.4% recorded in the prior year. Adjusted operating expenses rose to $300.0 million, primarily due to higher compensation expenses and costs associated with new store openings.
MillerKnoll's leadership expressed confidence in the company's performance despite ongoing macroeconomic challenges. CEO Andi Owen stated, "We delivered solid fiscal 2026 third quarter results, with sales growth across all three segments and strong order growth led by North America Contract and Global Retail. These results underscore the strength and resilience of our diversified portfolio."
The company also highlighted its liquidity position, reporting $594.0 million as of February 28, 2026, which includes cash on hand and availability under its revolving credit facility. Cash flow from operations was $61.1 million, slightly down from $62.1 million in the same quarter last year.
Looking ahead, MillerKnoll anticipates net sales for the fourth quarter of fiscal 2026 to range between $955 million and $995 million, with an expected adjusted operating margin of 38.5% to 39.5%. The company remains focused on driving profitable growth and creating long-term value for its shareholders.
