Furniture company stock MillerKnoll (MLKN +5.96%) collapsed 21% through 10:15 a.m. ET Thursday, under the weight of an earnings miss that happened last night.
Heading into the company's fiscal Q3 2026 report, analysts forecast MillerKnoll would earn $0.45 per share on sales of $942 million. In fact, the company reported $0.43 per share on sales of only $926.6 million.
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MillerKnoll Q3 earnings
The news wasn't all bad. Although MillerKnoll may have "missed on sales" for the quarter, it still grew its sales a respectable 6% year over year, while expanding its gross profit margin by 20 basis points and cutting operating costs by 26% -- impressive improvements.
The good news is that these improvements helped to flip MillerKnoll from year-ago operating and net losses to operating and net profits this time around. The bad news is that the company missed on earnings -- and the worse news is that the $0.43 profit it did report was only non-GAAP.
Actual earnings calculated under generally accepted accounting principles (GAAP) for the quarter were only $0.34 per share.
NASDAQ: MLKN
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Why investors aren't happy with MillerKnoll
Investors don't seem impressed with this Q3 result, but what about next quarter?
Well, that's the other bad news. Turning to guidance, MillerKnoll says sales will range from $955 million to $995 million. Taken at the midpoint, that's only about a 1% improvement in sales, so a slowdown from MillerKnoll's performance in Q3. Gross margins are expected to improve, however, to about 39% (up 100 basis points sequentially). Non-GAAP earnings should improve to about $0.52 per share.
That's significantly below the $0.59 per share that Wall Street analysts are forecasting, however. No wonder investors are upset.
