The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Greg Burns - Sidoti & Company, LLC - Analyst
: Good evening, just to follow-up on the retail momentum, are you seeing with the with the Assortment growth, are you seeing.
Bigger order sizes, more net customers coming through your retail locations and e-commerce or, more engagement with existing customers,
higher order rates like what is the dynamic you're seeing within your customer segment?
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DECEMBER 17, 2025 / 10:00PM, MLKN.OQ - Q2 2026 MillerKnoll Inc Earnings Call
Question: Greg Burns - Sidoti & Company, LLC - Analyst
: Yeah. Okay. And can you talk about the kind of the road map to doubling the store count. Is that are you going to stay on this kind of 14 to
15 stores a year? Is that your thought right now? And how should we think about maybe the margin profile of that business? Like are we are
you going to operate it kind of at this low single-digit range for the foreseeable future? How should we think about maybe leverage on some
of these investments starting to show through?
Question: Greg Burns - Sidoti & Company, LLC - Analyst
: Okay. So the like gross 5 to 6 a quarter net declining starting to decline as we move into next fiscal year. That net number will start to
decline?
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DECEMBER 17, 2025 / 10:00PM, MLKN.OQ - Q2 2026 MillerKnoll Inc Earnings Call
Question: Greg Burns - Sidoti & Company, LLC - Analyst
: Yeah. Okay, alright, thank you.
Question: Douglas Lane - Water Tower Research LLC - Analyst
: Yeah, hi, good evening, everybody, just looking at the, top-line here with the beat in the 1st quarter, the beat in the second quarter, the 3rd
quarter is pretty meaningfully above consensus, and your orders went from down mid single-digits to up mid single-digits sequentially, so
something's getting better out there and. I don't know, what it sort of goes counter to what I'm reading anyway about the macro. So what
are the two or three key macro trends that are really starting to work here? Is it back to office or really what's going on?
Question: Douglas Lane - Water Tower Research LLC - Analyst
: Yeah, no question. Something is really coming together there. So what shifting gears a little bit with the consolidation going on in the industry,
how have you thought about? Or what changes are you thinking about with in reaction to the consolidation now that you've had about 6
months or so to digest it?
Question: Douglas Lane - Water Tower Research LLC - Analyst
: That's true. You've been through a lot of consolidation yourself over the years. And just finally, on capital allocation, can what is the is there
a target for a leverage ratio here? You seem to be hovering just under 3 times. And is that sort of a target, a soft target of where you want
to be? And then how do you think about capital expenditures and share repurchases in that context?
Question: Douglas Lane - Water Tower Research LLC - Analyst
: Okay, that's helpful, thank you.
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