• Net sales of $955.7 million, up 10.9% as reported and up 10.0% organically, year-over-year
• Orders of $885.4 million, down 5.4% as reported and down 6.2% organically, year-over-year, primarily as a result of order pull-forward in the fourth quarter of fiscal 2025 in the North America Contract segment
• Gross margin decreased 50 basis points, primarily from approximately $8.0 million of net tariff-related impact in the quarter, partially offset by the benefit of leverage on higher net sales
• Consolidated operating expenses decreased to $314.6 million
• Consolidated adjusted operating expenses increased to $308.0 million, driven primarily by higher fixed and variable compensation and increased variable expense from the higher sales volume
• Operating expense special charges of $6.6 million:
  • $0.5 million of restructuring charges related to a facility consolidation
  • $6.1 million of purchase accounting amortization
• Debt extinguishment charges of $7.8 million related to the refinancing of our Term Loan B, which were recorded under Other expenses, net
• Operating margin of 5.6%, compared to 1.8% in the prior year
• Adjusted operating margin of 6.3%, compared to 5.8% in the prior year

First Quarter 2026 Cash Flow, Debt, and Liquidity

• Liquidity, as of August 30, 2025, of $480.5 million reflected cash on hand and Revolving Credit Facility availability
• Issued $550 million Term Loan B during the quarter, replacing our existing Term Loan B and extending the maturity date by four years to 2032
• Cash flow from operations of $9.4 million
• Net debt-to-EBITDA ratio, as defined by our Credit Facility, of 2.92x
• Near term scheduled debt maturities:
  • $12.4 million in fiscal 2026
  • $23.3 million in fiscal 2027
  • $25.8 million in fiscal 2028

“We are pleased with our strong start to fiscal 2026, exceeding our expectations, and reflecting strong execution by our teams, improving conditions in several key markets, and continued progress on our strategic growth initiatives.  Our first quarter performance demonstrates the ability of our business model to deliver revenue and earnings growth while maintaining balance sheet strength and navigating dynamic external pressures. As we look to the balance of our year, we are excited for the recently announced leadership changes on our Board of Directors and Executive team and the growth opportunities we have ahead,” said Andi Owen, President and Chief Executive Officer. 

First Quarter Fiscal 2026 Results by Segment

North America Contract

• Q1 net sales of $533.9 million, up 12.1% on both a reported and organic basis, year-over-year
• Q1 orders of $492.2 million, down 8.2% both as reported and organically, year-over-year
  • Pricing actions taken in the fourth quarter of fiscal 2025 drove estimated order pull-ahead of between $55 million to $60 million out of the first quarter of fiscal 2026. This factor is an important consideration in evaluating year-over-year order growth in the first quarter within the North America Contract segment.
• Q1 operating margin of 10.7% compared to 3.4% in the prior year
• Q1 adjusted operating margin of 11.4%, up 200 basis points compared to prior year, primarily from fixed expense leverage on higher net sales, partially offset by higher net tariff-related impact

International Contract 

• Q1 net sales of $167.5 million, up 14.4% as reported and up 11.3% organically, year-over-year
• Q1 orders of $154.5 million, down 6.5% as reported and down 9.2% organically, year-over-year
• Q1 operating margin of 8.1% compared to 6.5% in the prior year
• Q1 adjusted operating margin of 8.5%, down 60 basis points year-over-year, primarily from regional and product sales mix

Global Retail

• Q1 net sales of $254.3 million, up 6.4% as reported and up 4.9% organically, year-over-year
• Q1 orders of $238.7 million, up 1.7% as reported and up 0.3% organically, year-over-year
  • Q1 orders were up 8% in the North America region, year-over-year
• Q1 operating margin of 0.6% compared to 2.2% in the prior year
• Q1 adjusted operating margin of 1.2%, down 190 basis points year-over-year, primarily from increased freight costs, higher net tariff-related impact and new retail store opening costs
• Q1 new retail store openings: two DWR stores in Sarasota, FL, and Las Vegas, NV, and two Herman Miller stores in Chicago, IL, and Philadelphia, PA