Furniture Group MillerKnoll to Offset Tariff Impact With Strategic Pricing, Supply Chain Adjustments

MILAN — As U.S. President Donald Trump’s trade policy evolves, furniture companies around the world are armoring up to safeguard their earnings amid macroeconomic uncertainty.

Zeeland, Mich.-based MillerKnoll, whose portfolio includes American brands Knoll, Herman Miller, Design Within Reach and Holly Hunt, as well Copenhagen-based Muuto and textile firm Maharam, is one such firm.

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On Wednesday, MillerKnoll chief executive officer Andi Owen said its gameplan involves price increases and efficiency throughout the supply chain.

“We’re using what we’ve learned from earlier rounds of tariffs and the pandemic along with our manufacturing and supply chain footprint to manage our approach in this dynamic environment. To begin, we recently announced a 4.5 percent list price increase, which will become effective on June 2,” she said during the company’s third-quarter conference call Wednesday.

In addition, the company said it will partner with suppliers, leverage value engineering and pinpoint flexibility within its supply chain to offset cost impacts inflicted by Trump’s policy.

“We will also consider incremental price surcharges if necessary to manage this period of volatility. Importantly, all of this will be done with an eye toward what will be the most transparent and least disruptive for our customers and dealers,” Owen added.

Earlier this month, London-based economic research and credit ratings provider Fitch Rating said that if Trump succeeds in implementing significant tariffs on Canada, Mexico, the European Union and China, revenue growth and profitability for most corporate sectors across the globe will suffer.

On March 12, the U.S. placed 25 percent tariffs on all imports of steel- and aluminum-related products, including those from the European Union. Treasury Secretary Scott Bessent has said the administration will likely impose reciprocal duties on about 15 percent of the nations that have a trade imbalance with the U.S. The 25-percent duties on goods from Mexico and Canada are also set to take effect on April 2. Trump on Wednesday put 25 percent tariffs on imports of cars and car parts, with some exceptions.

In the third quarter of fiscal year 2025 ended March 1, MillerKnoll’s net sales rose 0.4 percent to $876.2 million, driven by its growing global retail business. Operating loss margin for the quarter was 9.4 percent compared to an operating income margin of 4.9 percent in the same quarter of the last fiscal year.

Reported diluted loss per share was 19 cents for the quarter, compared to diluted earnings per share of 30 cents in the prior year.

Macroeconomic uncertainty impacted contract orders as firms exercised caution. Lower than expected North American orders were offset by a rise in international contract business which is driving growth sector-wide. “We continue to see positive signs in less mature markets and we’re pleased with strong orders in APMEA [Asia Pacific, Middle East and Africa], especially in the Middle East, India and Japan along with Mexico, Brazil and portions of Mainland Europe,” Owen said.

The company was cautious on its 2025 revenue target of $3.62 billion to $3.67 billion, with estimated incremental costs related to tariffs net of expected mitigation efforts already factored into this estimate.

Across the board, furniture companies have been reworking their sales forecasts, amid an uncertain macro climate marked by a difficult housing market and declining consumer confidence.

Earlier this week fellow U.S.-based brand Williams-Sonoma Inc., which is home to Pottery Barn, West Elm, and others, said it sees full-fiscal-year revenue in the range of plus or minus 1.5 percent, with comparable or same-store sales flat or rising 3 percent, given the current climate.

MillerKnoll came to be after fellow U.S. heritage brand Herman Miller bought Knoll in 2021 and is listed on Nasdaq.

Knoll was founded in 1938 in New York City in a small space on East 72nd Street by German-born furniture-maker Hans Knoll, who was greatly influenced by the Bauhaus movement. Knoll propelled the company into a postwar era with his wife, American architect Florence Schust. The duo later became well-known for redefining the modern office.

Following Hans’ death in 1955, Florence succeeded him as president and sold the company at the end of the ’50s. She worked at the company until 1965 and famously spearheaded the interior design of the CBS headquarters in New York City.

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