Reported results
- Net sales of $923.4 million, down 3.4% as reported and down 3.3% organically, year-over-year (GAAP)
- Gross margin increased 320 basis points to 41.7%, with adjusted gross margin up 330 basis points to 41.8% (non-GAAP)
- Operating earnings of $51.8 million at 5.6% margin (GAAP); adjusted operating earnings of $65.7 million at 7.1% margin (non-GAAP)
- Diluted earnings per share of $0.38 (GAAP); adjusted diluted earnings per share of $0.53 (non-GAAP), including $0.11 per share net benefit from tariff refunds
- Operating cash flow of $49.1 million compared to $9.4 million in prior year; net debt-to-EBITDA ratio of 2.75x
- Orders of $913.9 million, up 3.2% as reported and up 3.5% organically, year-over-year
Guidance
- Q2 FY2027 net sales guidance of $972 million to $1.012 billion
- Q2 FY2027 gross margin guidance of 38.3% to 39.3%
- Q2 FY2027 adjusted operating expenses guidance of $321 million to $331 million (non-GAAP)
- Q2 FY2027 adjusted diluted earnings per share guidance of $0.43 to $0.49 (non-GAAP)
- Full year FY2027 net sales guidance of $3.88 billion to $4.03 billion (revised from prior guidance of $3.93 billion to $4.13 billion)
- Full year FY2027 adjusted diluted earnings per share guidance of $1.85 to $2.15 (non-GAAP), unchanged from prior guidance
- Full year capital expenditures of approximately $125 million to $135 million
- Expected 14 to 18 new retail store openings for full year, including 5 to 7 new openings in Q2
Notes
Q1 results included approximately $10 million net increase in operating income from U.S. government tariff refunds (IEEPA tariffs), representing $0.11 per share benefit and 110 basis points of operating margin improvement. Operating expense special charges of $13.4 million included $6.0 million restructuring charges, $5.7 million amortization of Knoll purchased intangibles, and $1.7 million CEO transition costs. Full year guidance includes estimated $0.07 per share unfavorable impact from Canada-related tariff costs over next three quarters. Board declared quarterly cash dividend of $0.1875 per share on July 14, 2026, payable October 15, 2026.
Price and volatility reaction
The stock moved -1.4% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -19.8 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 20.32 | 2026-09-21 |
| Close after release | 20.04 | 2026-09-23 |
| Realised move | -1.4% | close to close |
| 30d ATM IV change | -19.8 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-22 (8-K, Item 2.02). Read the original filing on sec.gov.