MillerKnoll plans 14–15 new stores, order growth 9.2%, trims $41M debt
MillerKnoll posted $932 million in Q3 orders, up 9.2% reported and 7.2% organically, and will open three Q4 stores toward a 14–15-store fiscal-year expansion. The company cut debt by $41 million to a 2.75× debt/EBITDA ratio, saw adjusted EPS of $0.43, and anticipates a $12 million sales hit.
1. Q3 Sales Performance
MillerKnoll generated $932 million in orders, marking a 9.2% increase as reported and a 7.2% gain on an organic basis in Q3. Growth in both retail and contract segments underpinned the rise despite macroeconomic challenges.
2. Retail Footprint Expansion
The company opened three new retail stores during Q3 and aims to launch three to four more in Q4, reaching a total of 14–15 new locations over the fiscal year to bolster its market presence.
3. Financial Metrics
MillerKnoll reduced its debt by $41 million, cutting its debt-to-EBITDA ratio to 2.75 times. Adjusted EPS declined slightly to $0.43 from $0.44 a year earlier.
4. Headwinds and Outlook
Severe weather in North America led to lower traffic and some store closures, while the Middle East conflict is expected to delay $12 million in orders. The company anticipates margin pressure from higher oil prices, increased logistics costs and shipping expense reversals.