By Kelly Cloonan

MillerKnoll logged lower profit in its latest quarter as contract sales declined.

The results were better than expected, though, with the office-furniture company pointing to strength in its retail segment.

Shares rose 6.9% to $18.73 in after-hours trading on Wednesday.

Chief Executive Andi Owen said the company's North America retail segment had a record performance during the Black Friday weekend, helping to push global retail sales up 4.7% in the quarter.

The segment has also benefited from new store openings, expanded product assortment, e-commerce growth and increased brand awareness, Owen said. It also has the advantage of a primarily U.S.-based supply chain, which means the company's pricing is less exposed to tariff risk compared to competitors.

"We are encouraged by our customers' engagement with our brands and positive response as we execute this strategy," Owen said during a call with analysts.

The company's contract business also gained momentum in the quarter, Owen said, even though its sales declined 3.1% in North America and 6.3% internationally on a year-over-year basis.

Organizations have prioritized bringing their employees together and refreshing their workspace, particularly in resilient industries like healthcare, Owen said.

"Orders, industry benchmarks and dealer sentiment were all up this quarter," she said. "The return to office trend is positively impacting demand for commercial real estate, design services and contract furniture."

The company on Wednesday posted a profit of $24.2 million, or 35 cents a share, compared with $34.1 million, or 49 cents a share, a year earlier.

Adjusted earnings per share were 43 cents, ahead of estimates of 41 cents a share according to analysts polled by FactSet.

Sales fell 1.6% to $955.2 million, topping analyst estimates of $943.1 million.

Going forward, the company is well-positioned to build on its momentum as industry trends continue to improve, Owen said.

For the current fiscal third quarter, the company said it expects adjusted earnings per share of 42 cents to 48 cents, and sales of $923 million to $963 million. Analysts had been looking for 41 cents in adjusted earnings per share and $915.9 million in sales.

The company expects added costs from tariffs will be offset in the quarter by previously announced pricing changes.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

December 17, 2025 18:59 ET (23:59 GMT)

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