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MillerKnoll lowers full-year sales outlook as demand softens
Management also cited tariff actions, including a U.S.-Canada headwind estimated at $0.07 per share, and expects price-cost pressure of 20 to 30 basis points in Q2.
MillerKnoll cut its full-year sales guidance to a range of $3.88 billion to $4.03 billion, attributing a 3.4% revenue decline in the quarter to softer-than-anticipated demand in North America Contract and Global Retail, according to a summary of the company’s Q1 2027 earnings call posted by Yahoo Finance.
The company said North America Contract performance was affected by a difficult year-over-year comparison tied to a $55 million to $60 million order pull-forward in the prior year related to tariff pricing actions. Management maintained that internal indicators, such as project funnel additions and awarded contracts, remain constructive, suggesting the weakness reflects timing rather than a structural slowdown.
For Global Retail, MillerKnoll described a pivot toward smaller-format Herman Miller stores to improve capital efficiency, while using direct mail to offset rising digital advertising costs. International Contract growth was linked to new product traction, including the Concert line by Knoll, supporting expansion in the European private office category.
MillerKnoll expects an estimated $0.07 per share headwind from recent U.S.-Canada tariff actions, which it plans to mitigate through dual-sourcing and inventory pre-stocking. The company also forecast slight price-cost headwinds of 20 to 30 basis points in Q2 as inflationary pressures on steel and diesel increase, while keeping its EPS range anchored by expected cost-saving realizations.