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Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<div><ul><li>MillerKnoll announced today that President and CEO Andi Owen will retire effective June 30, 2026, as mutually agreed with the Board.</li><li>Owen has resigned from the Board and commenced a leave of absence effective immediately.</li><li>The announcement appears abrupt since Owen gave no indication of an impending departure on the March 25 earnings call and no permanent successor was simultaneously named.</li></ul></div>

MillerKnoll announced today that President and CEO Andi Owen will retire effective June 30, 2026, as mutually agreed with the Board.Owen has resigned from the Board and commenced a leave of absence effective immediately.The announcement appears abrupt since Owen gave no indication of an impending departure on the March 25 earnings call and no permanent successor was simultaneously named.

MLKN: Owen Retires as CEO; Stutz Named Interim; 4QFY26 Outlook Reaffirmed

<div><ul><li>Global Retail expansion targets North America’s $100 billion addressable market through four growth levers: (1) doubling store footprint with 10-15 new locations annually; (2) expanding product assortment (currently ~40% the size of nearest peer); (3) increasing e-commerce sales; and (4) building brand awareness (DWR brand awareness is one-half that of Herman Miller and one-fifth that of RH).</li><li>New store economics demonstrate attractive returns. DWR stores (7,000-12,000 square feet) require a $3.5-6.5 million upfront investment, achieve sales maturity in ~24 months, deliver a three-year payback, and generate mid- to high-teens contribution margins.</li><li>Herman Miller stores (~1,800 square feet) need a $1-1.5 million investment, reach profitability in year one, mature within 24 months, and deliver low to mid-20s contribution margins.</li></ul></div>

Global Retail expansion targets North America’s $100 billion addressable market through four growth levers: (1) doubling store footprint with 10-15 new locations annually; (2) expanding product assortment (currently ~40% the size of nearest peer); (3) increasing e-commerce sales; and (4) building brand awareness (DWR brand awareness is one-half that of Herman Miller and one-fifth that of RH).New store economics demonstrate attractive returns. DWR stores (7,000-12,000 square feet) require a $3.5-6.5 million upfront investment, achieve sales maturity in ~24 months, deliver a three-year payback, and generate mid- to high-teens contribution margins.Herman Miller stores (~1,800 square feet) need a $1-1.5 million investment, reach profitability in year one, mature within 24 months, and deliver low to mid-20s contribution margins.

MLKN: Global Retail Outperforming Industry; Contract Segment Poised for Recovery

<div><ul><li>MLKN reported 2QFY26 ongoing EPS of $0.43 versus $0.55 in 2QFY25, down 21.8%, but above FactSet consensus of $0.41, which was also our estimate.</li><li>Sales handily beat expectations once again, coming in at $955.2MM versus $970.4MM in 2QFY25, down 1.2%, but above our estimate of $941.5MM and the FactSet range of $941-947MM, although within management’s wide range of $926-966MM given last quarter.</li><li>North America contract sales declined 3.1% to $508MM, above our $498.5MM estimate, while Global Retail increased 4.7% to $275.8MM, above our $269.9MM estimate.</li></ul></div>

MLKN reported 2QFY26 ongoing EPS of $0.43 versus $0.55 in 2QFY25, down 21.8%, but above FactSet consensus of $0.41, which was also our estimate.Sales handily beat expectations once again, coming in at $955.2MM versus $970.4MM in 2QFY25, down 1.2%, but above our estimate of $941.5MM and the FactSet range of $941-947MM, although within management’s wide range of $926-966MM given last quarter.North America contract sales declined 3.1% to $508MM, above our $498.5MM estimate, while Global Retail increased 4.7% to $275.8MM, above our $269.9MM estimate.

MLKN: Another Top-Line-Driven Beat; Raising Estimates

<ul><li>MLKN reported 1QFY26 adjusted EPS of $0.45 versus $0.36 in 1QFY25, up 25.2%, and well ahead of FactSet consensus of $0.34, which was also our forecast, and management’s expectations for $0.32-0.38.</li><li>The adverse net tariff impact on EPS was ~$0.08, slightly better than the $0.09- 0.11 expected, which was offset by a $0.01-0.02 adverse impact on EPS from a higher-than-expected tax rate.</li><li>Sales in the quarter increased 10.9% to $955.7MM, better than consensus of 5.7% and our estimate for 5.2% growth. </li></ul>

MLKN reported 1QFY26 adjusted EPS of $0.45 versus $0.36 in 1QFY25, up 25.2%, and well ahead of FactSet consensus of $0.34, which was also our forecast, and management’s expectations for $0.32-0.38.The adverse net tariff impact on EPS was ~$0.08, slightly better than the $0.09- 0.11 expected, which was offset by a $0.01-0.02 adverse impact on EPS from a higher-than-expected tax rate.Sales in the quarter increased 10.9% to $955.7MM, better than consensus of 5.7% and our estimate for 5.2% growth. 

MillerKnoll, Inc: 1QFY26 Beats Handily; Raising Estimates

<ul><li>Strong sales growth in 4QFY25, especially in North American Contract, driven in part by demand pull forward.</li><li>MLKN delivered adjusted EPS of $0.60, significantly better than our estimate.</li><li>North American Contract saw organic sales growth of 12.6%, which led to a 195-bp improvement in operating margins on better sales leverage. </li></ul>

Strong sales growth in 4QFY25, especially in North American Contract, driven in part by demand pull forward.MLKN delivered adjusted EPS of $0.60, significantly better than our estimate.North American Contract saw organic sales growth of 12.6%, which led to a 195-bp improvement in operating margins on better sales leverage. 

MillerKnoll, Inc: 4Q25 Adj. EPS of $0.60 Beats WTR Estimate

United States

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior office furnishings, furniture systems, products, and services. The Company markets its products to companies, organizations, and individuals worldwide.

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MillerKnoll (MLKN US)

MLKN: Owen Retires as CEO; Stutz Named Interim; 4QFY26 Outlook Reaffirmed

The announcement appears abrupt since Owen gave no indication of an impending departure on the March 25 earnings call and no permanent successor...

Water Tower Research

MLKN: Global Retail Outperforming Industry; Contract Segment Poised for Recovery

Global Retail expansion targets North America’s $100 billion addressable market through four growth levers: (1) doubling store footprint with 10-15...

Water Tower Research

MLKN: Another Top-Line-Driven Beat; Raising Estimates

MLKN reported 2QFY26 ongoing EPS of $0.43 versus $0.55 in 2QFY25, down 21.8%, but above FactSet consensus of $0.41, which was also our estimate

Water Tower Research

MillerKnoll, Inc: 1QFY26 Beats Handily; Raising Estimates

MLKN reported 1QFY26 adjusted EPS of $0.45 versus $0.36 in 1QFY25, up 25.2%, and well ahead of FactSet consensus of $0.34, which was also our...

Water Tower Research

MillerKnoll, Inc: 4Q25 Adj. EPS of $0.60 Beats WTR Estimate

Strong sales growth in 4QFY25, especially in North American Contract, driven in part by demand pull forward. MLKN delivered adjusted EPS of $0.60,...

Water Tower Research

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