MillerKnoll reporting positive sales growth for both the fourth quarter ended May 31, as well as fiscal year. Despite this the company earnings were down as a result of tariff-related costs.

For the period ended May 31, net sales of $961.8 million, up 8.2% as reported and up 7.8% organically, year-over-year. Overall, in fiscal year 2025, net sales of $3.7 billion, up 1.1% as reported and up 1.6% organically, year-over-year.

Despite these results, the company reported a net loss of $36.9 million in the fiscal year 2025. The year prior, the company reported net profit of $82.3.

In the fourth quarter, ended May 31, tax and tariffs dramatically dragged down earnings. The firm posted a net loss of $57.1 million in the three-month period. Last year’s fourth quarter, ended June 1, 2024, the company reported a profit of $9.9 million.

Andi Owen, president and chief executive officer, said that she is “cautiously optimistic” while navigating what continues to be a very dynamic macroeconomic environment.  “Prior to tariffs being reimposed in January,” she said, “we had seen three consecutive quarters of order growth in the North American contract segment.”

She pointed to growth of the number of orders in the fourth quarter. “More companies are now working in the office and focused on how to attract associates through upgraded spaces and elevated experiences that support being together,” she said. “A recent study among Fortune 100 companies showed that days in the office have increased 68% since 2022. Office leasing activity is rising and rent has fully recovered for Class A space. Since December 2024, BIFMA industry orders have consistently trended up on a year over year basis.”

The company, which ranks #2 on the FDMC 300 list of top North American wood products manufacturers, found that customers bought ahead of tariff-related price increases.  

Jeff Stetz, Chief Financial Officer, said that its North America contract business, "we saw both strong orders and sales, which was partially enhanced by pull forward activity ahead of our recently announced tariff surcharge and list price increase. "

New orders at the consolidated level in the fourth quarter were $1,040,000,000 up 11.1% as reported and 10.7 higher on an organic basis. Our consolidated backlog increased by $78,000,000 to $761,000,000 from improved demand in the quarter. We were very pleased with our consolidated gross margin of 39.2% in the fourth quarter. While down slightly to last year, gross margin was up 130 basis points sequentially.

Gross margin included a drag of approximately $7,000,000 from tariff related impacts to cost of goods sold, an amount right in line with the estimate we provided in our fourth quarter earnings guidance back in March. Given the volume of orders pulled forward ahead of our price surcharge and the normal time it takes to begin benefiting from list price changes in our contract businesses, we expect margins to be negatively impacted in the near term by tariffs currently in place, but remain confident our pricing actions will offset these later in the fiscal twenty twenty six.