Fewer orders from the Middle East and higher transportation costs could cost MillerKnoll nearly $9 million. During a recent third-quarter earnings call, executives with the office furniture manufacturer offered a prediction, should the war with Iran continue.
“This region remains an important long-term growth opportunity for our international contract business. In the near term, the current conflict is creating disruptions, and we do expect some impact to fourth quarter sales and costs.”
That’s MillerKnoll President and CEO Andi Owen. She said the company is also anticipating an increase in the cost of petroleum-based materials such as foam and plastic due to the conflict.
“We’ve tried to layer into this guide as what we know today, which is higher oil costs, potentially higher logistics costs to shipping containers, as well as our inability to ship orders we have directly into the Middle East.”
Owen says despite these predictions, the company reported a solid third quarter, with net sales of $926.2 million, a 5.8% increase year over year, with plans to open more stores across the country.
“We plan to open three to four more locations before the end of fiscal 2026, ending the year with 14 to 15 new stores in the U.S.”
Executives say as they’ve done in the past with tariffs, they’ll watch the situation closely and adapt as needed.
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