Total Revenue (Net Sales)

+0.5% (from $872.3M to $876.2M)

Overall net sales remained flat, as modest increases in some segments offset weaker performance in others, reflecting a stable market amid mixed performance across geographies. " "

Americas Contract Revenue

+6% (from $441.1M to $468.2M)

Americas growth was driven by increased sales volume and incremental price increases, adding roughly $27M to revenue, consistent with previously noted strong order trends and pricing initiatives in the region. " " " "

International Contract & Specialty

-33% (from $217.3M to $145.5M)

A significant decline resulted from softness in demand and challenging macroeconomic conditions, which impacted sales volumes and orders markedly compared to the prior period. " " " "

Global Retail

+23% (from $213.9M to $262.5M)

Robust digital investments and operational improvements bolstered performance, driving a remarkable rebound in net sales despite prior challenges with promotional timing – an increase of approximately $48.6M. " " " "

Operating Earnings

Swing from +$42.8M to –$82.2M (loss of $125M)

A dramatic deterioration in operating earnings occurred, primarily due to declining margins in underperforming segments such as Global Retail and rising operating expenses, which outweighed improvements in other areas. " "

Net Earnings

Fall from +$23.1M to –$11.7M

Net earnings reversed into a loss as the decline in operating earnings, increased expenses and tax impacts eroded profitability compared to the previously positive performance. " "

Cash and Cash Equivalents

–26% (from $230.4M to $169.8M)

A 26% drop in cash balances resulted from substantial financing outflows (including increased share repurchases and term loan payments) combined with lower operating cash flows and higher capital expenditures compared to the previous period. " "

Net Sales

Q4 2025

no prior guidance

$910 million – $950 million, representing a 4.6% increase versus last year (midpoint $930M) "

no prior guidance

Gross Margin

Q4 2025

Expected to range “modestly better than Q2 2025” "

37.5% – 38.5% "

cannot compare

Adjusted Diluted EPS

Q4 2025

no prior guidance

$0.46 – $0.52 per share "

no prior guidance

Tariff-Related Costs

Q4 2025

no prior guidance

$5 million – $7 million before tax (impacting EPS by $0.05 – $0.07) "

no prior guidance

Order Momentum and Pipeline Strength

In Q4 2024, Q1 and Q2 discussions focused on robust pipeline indicators—with consistent order growth, strong funnel additions, and rising large project trends. " " "

In Q3 2025, executives highlighted healthy leading indicators (e.g. 12‑month funnel +7% YoY, awarded projects up 27%) but noted a “choppier” order environment in some segments. " " "

Consistent positive signals remain, but sentiment has shifted to a more cautious optimism as strong indicators coexist with acknowledgement of timing variability and macro uncertainties. " " "

Retail Growth

Q4 2024 saw modest organic order gains (around 1%), while Q1 2025 had tepid demand with slight declines; Q2 2025 described mid-single-digit increases driven by promotional initiatives and improved average order values. " " "

Q3 2025 reported robust performance with reported retail orders up nearly 15% and organic growth up 17% (adjusted for timing), along with accelerated new collection launches and widened product assortment. " " "

Marked improvement is evident in the current quarter, driven by strong promotional execution and expanded product offerings, signaling growing confidence in retail performance relative to previous periods. " "

Physical Expansion

Earlier periods emphasized planned and executed expansions—Q2 2025 mentioned new store plans (Palm Springs, Las Vegas, Fairfax) and Q1 2025 talked about flagship launches in London/New York; Q4 2024 noted international showroom openings. " " " "

Q3 2025 saw the opening of two new stores (Palm Springs and Fairfax) and announced additional new locations in Q4 2025 and FY 2026, including a repositioned flagship in Chicago. "

Steady and global expansion continues with more physical locations and enhanced flagship experiences, reinforcing a long‑term commitment to retail growth. " "

Margin Improvement

Q4 2024 demonstrated significant margin gains through better inventory management and product mix optimization; Q1 2025 and Q2 2025 discussed modest operating margin improvements (in adjusted measures) alongside temporary pressures from seasonal shifts and volume leverage issues. " " "

In Q3 2025, conflicting signals emerged: while adjusted retail operating margins improved (up 80 bps), losses from special charges, international segment pressures, and restructuring issues weighed on overall profitability. " " "

Persistent cost challenges continue despite operational improvements—the narrative is one of cautious progress offset by non‐cash charges and external cost pressures, requiring ongoing attention. " " "

Contract Segment and Large Project Demand

Consistent across Q4 2024, Q1 and Q2 2025 were robust discussions about solid contract net sales, positive growth in large projects (over $5 million) and strong pipeline activities, though with some regional softness. " " " " "

Q3 2025 displayed mixed results: while North America’s contract net sales were up modestly, new orders declined slightly; meanwhile, large project indicators and international pipeline growth (especially in APMEA and Latin America) showed strength yet were tempered by macroeconomic uncertainties. " " "

The large project segment remains a growth driver, but conversion challenges and variable order activity indicate that while the pipeline is robust, market uncertainty is creating more variability in near‑term execution. " " "

Operating Margin Pressures and Profitability Challenges

In Q4 2024, margins improved via efficiency measures despite lower volumes; Q1 and Q2 2025 highlighted both improvements (e.g. adjusted margins rising) and setbacks (loss of fixed cost leverage, seasonal shifts) across segments. " " "

In Q3 2025, discussions focused on pressures from special charges (including large non‑cash impairments), declining margins in international and North America contract segments, and cost headwinds that led to notable reductions in reported margins. " " "

Ongoing profitability challenges persist despite earlier gains. In Q3 2025, the focus has shifted more sharply onto external cost pressures and restructuring impacts, making margin performance a continued area of concern. " " "

Tariff Uncertainty and Trade-Related Headwinds

Q2 2025 featured proactive mitigation measures (alternative sourcing, pricing actions) amid tariff concerns; earlier Q1 and Q4 2024 earnings did not address tariffs explicitly. " " "

In Q3 2025, tariff uncertainty was described as “extremely dynamic” and a key factor affecting order pacing and overall outlook, prompting measures such as a 4.5% price increase and contingency for further surcharges. " " " " "

Heightened emphasis in Q3 2025 contrasts with earlier periods; tariff issues have become more prominent and are now viewed as a significant risk factor requiring active management. " " "

International Market and Geopolitical Uncertainties

Q4 2024 and Q1 2025 mentioned international growth driven by emerging markets and integration of dealer networks, while Q2 2025 noted macroeconomic and political uncertainties in Europe amid active dealer network expansion. " " "

In Q3 2025, the international segment experienced mixed performance—net sales were down in some regions even as key markets like APMEA posted strong orders—with geopolitical and trade policy uncertainties cited as impacting demand. " " "

The global outlook remains mixed; while certain regions are performing well, overall international business is tinged with caution owing to geopolitical uncertainties and evolving trade policies. " " "

Return-to-Office and Hybrid Work Trends

Q4 2024, Q1 and Q2 2025 provided in-depth discussion on evolving work models—with increasing in‑office days and upgraded collaborative spaces to support hybrid trends, driven by renewed focus on employee connection. " " "

Q3 2025 did not mention return‑to‑office or hybrid work trends at all.

Disappeared from the Q3 agenda; previously a significant area of focus, indicating either resolution or a strategic de‑prioritization of the topic in the current period. " "

Strategic Investments in Digital Platforms and Global Expansion

Q4 2024 had strong emphasis on investing in digital platforms for dealer support and international expansion (new showrooms, enhanced dealer network, new flagship stores); Q1 and Q2 2025 also highlighted digital marketing initiatives and global footprint expansion efforts. " " " "

Q3 2025 did not feature any direct discussion of digital platform investments or global expansion strategies, with focus shifting instead to operational outcomes and market pressures.

No mention in the current period, suggesting that while previously a growth focus, these strategic investments may have been largely executed or temporarily sidelined in favor of managing near‑term volatility. " "

Knoll Brand Integration and Impairment Concerns

Q4 2024 discussed integration efforts and dealer network transitions for Knoll, while Q1 2025 reported progress in integrating about 60% of the international network; earlier periods laid the groundwork for integration. " " "

In Q3 2025, integration was largely complete; however, significant impairment charges were recorded related to goodwill and intangible assets for Knoll (and related brands), reflecting disappointing profitability in certain units. " " "

Integration appears complete, but the emergence of sizable impairment charges has shifted sentiment to a more cautionary tone regarding the valuation and short‑term profitability of the Knoll brand portfolio. " "

Extended Lead Times and Revenue Recognition Delays

Q1 2025 provided detailed insight into extended lead times caused by larger, more complex projects and resulting revenue recognition delays (e.g., backlog increasing from pre‑COVID levels). " "

Q3 2025 did not discuss these issues, with no reference made to extended lead times or delays in revenue recognition.

Topic has fallen out of focus; earlier concerns over longer project cycles now appear to be less pressing or are being managed more effectively, as they were not raised in the current period. "