The former CFO and COO Takes the top job permanently as MillerKnoll lowers its annual sales forecast but maintains its adjusted earnings outlook.
MillerKnoll Inc. (Nasdaq: MLKN) has appointed Jeff Stutz as CEO and a member of its board, effective Oct. 21, ending his interim tenure that began June 30 The board voted unanimously to appoint Stutz, expanding its membership to 11 directors from 10.
Stutz was chief operating officer from September 2025 to June 2026, overseeing the International Contract business, global manufacturing and distribution, and Europe-based brands including HAY and Muuto. He previously served as CFO for more than a decade, beginning in 2015. Stutz joined the company in 2001, when it was Herman Miller Inc., and later held finance posts that included investor relations vice president, corporate treasurer and chief accounting officer. He also served as president of the Geiger and DatesWeiser furniture brands.
John R. Hoke III, the board chairman, said directors chose Stutz after a search and remain focused on accelerating sales and improving profitability. Hoke said Stutz delivered higher operating income, margins and earnings as interim CEO. Stutz said he plans to work with the board to set priorities, manage costs and strengthen the balance sheet.
Jeff Stutz wins MillerKnoll CEO role after board search
The board said June 1 it would consider internal and external candidates, with an executive search firm’s help, to find a successor to Andi Owen, then president and CEO. Owen retired June 30 by mutual agreement with the board. She resigned from the board and began a leave of absence immediately. Stutz, then COO, performed her duties during the leave.
Compensation package increases annual incentives
Stutz’s base salary was $900,000 as interim CEO under a June 1 offer letter. His annual incentive target was 125% of base salary, and his equity incentive target was 325%. Under the Oct. 20 offer letter, the annual target stays at 125% of base salary and the long-term incentive target rises to 400% from 325%.
He will also receive a one-time equity grant with a target grant-date value of $1.075 million, split 60% performance stock units and 40% restricted stock units. The grant equals the difference between the target value of his July 2026 annual grant and his new annual target value.
Outside the two years following a change in control, Stutz is entitled to 18 months of base salary and benefits continuation if the company ends his employment without cause or he resigns for good reason. He must sign a release of claims and not revoke it. The company also amended his change-in-control agreement. The amendment raises the cash severance multiple to three times from two times and extends benefits continuation to 36 months from 24. The terms cover a qualifying termination within two years after a change in control and are consistent with those that applied to Owen.
Quarterly profit rises as sales drop
Net sales totaled $923.4 million in the quarter ended Aug. 29, compared with $955.7 million a year earlier. Net earnings were $27.6 million, compared with $21.1 million. Operating earnings were $51.8 million, down from $53.5 million, and the operating margin was 5.6% in both periods. The adjusted operating margin, which excludes certain charges, was 7.1%, compared with 6.3%.
The results included a net operating-income benefit of about $10 million from refunds of previously paid tariffs under the International Emergency Economic Powers Act. The refunds added $0.11 to diluted earnings per share, which were $0.38, compared with $0.29. Adjusted diluted earnings per share were $0.53, compared with $0.45. The quarter also included $1.7 million in CEO transition costs, consisting primarily of severance, benefits and advisory fees. Stutz, then interim CEO, said demand was softer than expected.
The company forecasted first-quarter net sales of $928 million to $968 million and adjusted diluted earnings per share of $0.33 to $0.39.
Outlook leaves earnings range unchanged
MillerKnoll lowered its fiscal 2027 net sales outlook to $3.88 billion to $4.03 billion from $3.93 billion to $4.13 billion, while its adjusted diluted earnings per share outlook stays at $1.85 to $2.15.
For the fiscal second quarter, it expects net sales of $972 million to $1.012 billion and adjusted diluted earnings per share of $0.43 to $0.49.
