MillerKnoll Inc. ( MLKN ) shares traded sharply lower in Thursday’s premarket session after the company reported third-quarter fiscal 2026 results that missed expectations and issued a softer-than-expected outlook.

Earnings Miss Expectations

Net sales rose 5.8% year over year to $926.6 million, falling short of the $942.0 million consensus estimate.

Segment performance was mixed. North America Contract revenue increased 4.4% to $488.6 million, while International Contract revenue grew 7.8% to $156.9 million. Global Retail sales climbed 7.1% to $281.1 million.

Orders rose 9.2% year over year, or 7.2% on an organic basis, reaching $931.6 million, supported by strength in North America Contract and Global Retail.

Adjusted operating margin declined to 5.7% from 6.6% a year earlier. Adjusted earnings came in at 43 cents per share, missing the 45-cent consensus estimate.

As of Feb. 28, 2026, the company reported $594.0 million in cash and available capacity under its revolving credit facility.

Outlook Signals Pressure

For the fourth quarter, MillerKnoll ( MLKN ) expects net sales between $955 million and $995 million, compared with the Street view of $993.2 million. The company guided adjusted earnings to 49 cents to 55 cents per share, below the 61-cent consensus estimate.

The company expects a direct $8 million to $9 million impact from the Middle East conflict, driven by limited shipments and higher logistics costs. It also anticipates $3.5 million to $4.5 million in expenses tied to new store investments, including three to four planned openings in the quarter.

MillerKnoll ( MLKN ) said incremental tariff costs are expected to be offset by previously disclosed pricing actions.

“Despite ongoing macroeconomic and geopolitical uncertainty, as well as weather-related impacts during the quarter, our team remained focused on disciplined execution and operational priorities within our control.

“We remain well positioned to drive profitable growth and create long-term value across our collective of brands through sustained revenue growth, margin expansion, cash generation and shareholder returns,” said President and Chief Executive Officer Andi Owen.

MLKN Price Action: MillerKnoll ( MLKN ) shares were down 18.38% at $15.80 during premarket trading on Thursday, according to Benzinga Pro data.