MillerKnoll, Inc. (MLKN): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how MillerKnoll, Inc. (MLKN), a giant in the world of modern design, operates and generates its revenue? Formed in 2021 through the merger of Herman Miller and Knoll, this company boasts a rich history and a diverse portfolio. Read on to discover more about MillerKnoll's journey, its key players, and its strategic approach to the market.

MillerKnoll, Inc. (MLKN) History

MillerKnoll Founding Timeline

Year established

The company was effectively established in 1938 with the founding of Knoll, although its roots can be traced back to 1905 with the birth of the Herman Miller Furniture Company.

Original location

Knoll's original location was in New York, while Herman Miller was based in Zeeland, Michigan.

Founding team members

The key founding figures were:

• Herman Miller, who initially acquired the Michigan Star Furniture Company in 1909.
• Gilbert Rohde, a designer who influenced Herman Miller's shift towards modern furniture in the 1930s.
• Hans Knoll, who founded Knoll in 1938.
• Florence Knoll, who joined Knoll in 1946 and played a crucial role in design and company direction.

Initial capital/funding

Information regarding the precise initial capital for both Herman Miller and Knoll's independent beginnings is not readily available in the provided context. However, it is understood that Herman Miller began with the assets of the Michigan Star Furniture Company, while Hans Knoll leveraged his family's experience in the furniture industry to establish Knoll.

MillerKnoll Evolution Milestones

MillerKnoll Transformative Moments

• The introduction of modern design: Herman Miller's collaboration with Gilbert Rohde in the 1930s marked a shift toward modern furniture, setting the stage for future design innovations.
• Florence Knoll's influence: Her arrival at Knoll in 1946 and subsequent design contributions shaped the company’s aesthetic and approach to interior space planning.
• Acquisition of Knoll by Herman Miller in 2021: This merger created MillerKnoll, a powerhouse in the industry, combining two significant legacies and expanding their market reach and capabilities.
• Emphasis on research and development: Both Herman Miller and Knoll invested heavily in R&D, leading to iconic designs and innovative workplace solutions.

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MillerKnoll, Inc. (MLKN) Ownership Structure

MillerKnoll, Inc. exhibits a mixed ownership structure, featuring a combination of institutional, insider, and retail investors.

MillerKnoll, Inc.'s Current Status

MillerKnoll, Inc. is a publicly traded company, listed on the Nasdaq Global Select Market under the ticker symbol MLKN. This allows shares of the company to be bought and sold by the public.

MillerKnoll, Inc.'s Ownership Breakdown

As of December 31, 2024, the ownership of MillerKnoll, Inc. is distributed among various types of shareholders. Here's a breakdown:

MillerKnoll, Inc.'s Leadership

The leadership team plays a crucial role in guiding the strategic direction of MillerKnoll, Inc. Key figures include:

• Andi Owen: Chief Executive Officer
• John Michael Erhart: Chief Financial Officer

These individuals, along with other members of the executive team and board of directors, are instrumental in making key decisions and shaping the company's future.

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MillerKnoll, Inc. (MLKN) Mission and Values

MillerKnoll aims to enhance the quality of life through exceptional design, reflecting a commitment to both aesthetics and functionality. The company's values emphasize innovation, sustainability, and social responsibility, guiding its operations and interactions with stakeholders.

MillerKnoll, Inc. Core Purpose

Official mission statement

MillerKnoll's mission statement is: 'We are a collective of dynamic brands and one of the largest and most influential modern design companies in the world.' It is further detailed in their 2024 proxy statement:

• 'We exist to design the world we live in. As a collective of dynamic brands, we design for people.'
• 'We are problem-solvers, innovators, and changemakers, united by a shared vision: to create a more sustainable, equitable, and beautiful future for all.'
• 'We are committed to reducing our environmental impact, promoting diversity and inclusion, and supporting the communities where we live and work.'

Vision statement

MillerKnoll's vision is to be a leader in modern design, recognized for its innovative products, sustainable practices, and commitment to social responsibility.

• To lead the industry in innovative design solutions.
• To create a positive impact on the environment.
• To foster a diverse and inclusive workplace.
• To support the communities in which they operate.

Company slogan/tagline

MillerKnoll's tagline is 'Design for the way we live,' encapsulating its focus on creating products and solutions that enhance everyday life. This slogan reflects the company's dedication to human-centered design and its belief in the power of design to improve the world.

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MillerKnoll, Inc. (MLKN) How It Works

MillerKnoll, Inc. operates by designing, manufacturing, and distributing a comprehensive range of furniture systems, seating, storage, and related products for various environments, including offices, healthcare facilities, educational institutions, and homes.

MillerKnoll's Product/Service Portfolio

MillerKnoll's Operational Framework

MillerKnoll's operational framework is built around a vertically integrated model, which allows the company to manage most aspects of its value chain, from design and manufacturing to distribution and sales. This structure enables greater control over quality, cost, and delivery timelines. Here's a breakdown:

• Design and Innovation: MillerKnoll invests significantly in research and development to create innovative and ergonomic designs.
• Manufacturing: The company operates manufacturing facilities that utilize advanced technology and sustainable practices to produce high-quality furniture and related products.
• Distribution: MillerKnoll uses a multi-channel distribution strategy, including direct sales, dealerships, and e-commerce platforms, to reach a broad customer base.
• Sales and Marketing: The company employs a dedicated sales force and marketing team to promote its products and build brand awareness.
• Project Management: MillerKnoll provides project management services to assist clients with planning, specifying, and installing furniture solutions for large-scale projects.

MillerKnoll's Strategic Advantages

MillerKnoll possesses several strategic advantages that contribute to its success in the competitive furniture market:

• Brand Reputation: MillerKnoll has a strong brand reputation for design excellence, quality, and innovation, built over decades.
• Product Innovation: The company's commitment to research and development enables it to introduce new and differentiated products that meet evolving customer needs.
• Distribution Network: MillerKnoll's extensive distribution network provides broad market coverage and efficient delivery of products to customers.
• Sustainability Initiatives: MillerKnoll has implemented various sustainability initiatives, such as using recycled materials and reducing waste, which appeal to environmentally conscious customers.
• Design Heritage: MillerKnoll owns iconic designs that are highly regarded in the industry.

To gain more insights into the company's guiding principles, you can explore Mission Statement, Vision, & Core Values of MillerKnoll, Inc. (MLKN).

MillerKnoll, Inc. (MLKN) How It Makes Money

MillerKnoll, Inc. primarily generates revenue through the design, manufacturing, and distribution of furniture and related services across various sectors, including offices, healthcare facilities, educational institutions, and homes.

MillerKnoll, Inc.'s Revenue Breakdown

MillerKnoll, Inc.'s Business Economics

MillerKnoll's business economics are influenced by several key factors that drive its profitability and market position:

• Pricing Strategies: The company employs value-based pricing, reflecting design, quality, and brand reputation. Premium pricing in the retail segment and competitive pricing in the contract segment are common.
• Cost Management: Efficient supply chain management and lean manufacturing processes help control production costs. Strategic sourcing and global manufacturing locations also play a role.
• Market Demand: Demand fluctuates with economic cycles, impacting both contract and retail sales. The contract segment is heavily influenced by corporate expansions and renovations, while retail sales depend on consumer spending and housing market trends.
• Product Innovation: Continuous investment in R&D drives product innovation, allowing the company to introduce new products that command higher margins and meet evolving customer needs.
• Distribution Channels: A mix of direct sales, dealer networks, and retail stores ensures broad market coverage. E-commerce platforms are increasingly important for reaching retail customers.

MillerKnoll, Inc.'s Financial Performance

MillerKnoll's financial performance can be assessed through the following metrics:

• For the third quarter of fiscal year 2024, MillerKnoll reported net sales of $945.7 million, a decrease of 5.7% compared to the same quarter in the previous year.
• The company's gross margin for Q3 2024 was 38.2%, while operating expenses were $294.9 million.
• MillerKnoll is implementing cost reduction strategies, targeting $60 million in savings by fiscal year 2025, which will positively impact future financial performance.

To gain more insights into MillerKnoll, Inc.'s financial health, read this comprehensive analysis: Breaking Down MillerKnoll, Inc. (MLKN) Financial Health: Key Insights for Investors

MillerKnoll, Inc. (MLKN) Market Position & Future Outlook

MillerKnoll is strategically positioned to leverage its combined strengths in the furniture and design industry, aiming for continued growth and market leadership. The company faces both opportunities in expanding markets and challenges from evolving consumer preferences and economic uncertainties. More insights about the company's goals can be found at Mission Statement, Vision, & Core Values of MillerKnoll, Inc. (MLKN).

Competitive Landscape

Opportunities & Challenges

Industry Position

MillerKnoll holds a significant position in the furniture and design industry, characterized by:

• A leading brand known for design heritage and innovation.
• A strong presence in both the commercial and residential segments.
• A commitment to sustainability and environmentally responsible practices.