MillerKnoll, Inc. (NASDAQ:MLKN) Q3 2023 Earnings Conference Call March 22, 2023 5:30 PM ET

Company Participants

Carola Mengolini - Vice President, Investor Relations

Andi Owen - Chief Executive Officer

Jeff Stutz - Chief Financial Officer

John Michael - President, Americas Contracts

Debbie Propst - President, Global Retail

Conference Call Participants

Greg Burns - Sidoti & Company

Reuben Garner - Benchmark Company

Budd Bugatch - Water Tower Research

Steven Ramsey - Thompson

Alex Fuhrman - Craig-Hallum Capital Group

Operator

Good evening and welcome to MillerKnoll’s Third Quarter Earnings Conference Call. As a reminder, this call is being recorded. [Operator Instructions] I would now like to introduce your host for today’s conference, Vice President of Investor Relations, Carola Mengolini.

Carola Mengolini

Thank you, Lisa. Good evening and welcome to MillerKnoll’s third quarter fiscal 2023 conference call. I am joined by Andi Owen, Chief Executive Officer; and Jeff Stutz, Chief Financial Officer. Also available during the Q&A session are John Michael, President of Americas Contracts and Debbie Propst, President of Global Retail.

Before I turn the call over to Andi, please remember our Safe Harbor regarding forward-looking information. During the call, management may discuss information that is forward-looking and involves known and unknown risks, uncertainties and other factors, which may cause the actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these factors, which are detailed in today’s press release. The forward-looking statements are as of today and assume no obligation to update or supplement these statements. We may also refer to certain non-GAAP financial metrics, which are reconciled and described in our press release posted on our Investor Relations website at millerknoll.com.

With that, I will turn the call over to Andi. Andi?

Andi Owen

Thanks, Carola. Good evening, everyone and thank you so much for joining our call. Throughout this quarter, our team delivered strong earnings and margin improvement despite challenging economic conditions. We have many competitive advantages. We have a collection of strong design brands, which are sold across multiple business channels and that cater to a different customer segments around the globe and we are nimble. We are capturing synergies, reducing our cost structure and optimizing our capabilities so that we are positioned to capture opportunities as and when the macroeconomic picture improves.

To be sure, this is a disruptive period. Traditional office usage and layouts are not as relevant as they want us for and new opportunities exist to help our customers design more hybrid, collaborative work environments. Our contract clients continue to engage us in conversations around reimagining their work spaces both to enhance their employee experience and to create multiuse spaces. Because of this, the volume of customer discussion remains very high and the funnel of potential project opportunities is robust, albeit somewhat uncertain in terms of timing. These customer interactions continue to emphasize the importance of non-traditional product categories to home and office settings. We believe that this pivot to premium ancillary product solution give MillerKnoll and our distribution partners, a distinct competitive advantage given our best-in-class collective brand.