By Kelly Cloonan

MillerKnoll gave a soft outlook for the current fiscal quarter, pointing to a drag on sales and higher costs tied to conflict in the Middle East.

The office-furniture company said Wednesday it expects adjusted earnings per share of 49 cents to 55 cents, and sales of $955 million to $995 million, for its fiscal fourth quarter.

The midpoints of both guidance ranges missed Wall Street's expectations, given analysts had been looking for 61 cents in adjusted earnings per share and $993.2 million in sales for the quarter.

MillerKnoll said it expects a headwind of about $8 million to $9 million, or 9 cents to 10 cents a share, in the quarter related to the Middle East conflict due to minimal expected shipments to the region and higher logistics costs.

The forecast also factors in $3.5 million to $4.5 million in costs associated with new store investments, including three to four new store openings in the quarter, the company said.

The stock slid 15% to $16.48 in after-hours trading. Through market close, shares are up about 4% in the past year.

The guidance came as the company swung to a profit in its latest quarter on higher revenue, boosted by growth in both contract and retail sales.

For the fiscal third quarter, MillerKnoll posted a profit of $23.5 million, or 34 cents a share, compared with a loss of $12.7 million, or 19 cents a share, a year earlier.

Adjusted earnings per share were 43 cents, compared with estimates of 45 cents a share according to analysts polled by FactSet.

Revenue rose 5.8% to $926.6 million, compared with analyst estimates of $942 million.

Contract sales rose 4.4% in North America and 7.8% internationally. Global retail sales gained 7.1%.

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

(END) Dow Jones Newswires

March 25, 2026 17:07 ET (21:07 GMT)

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