MILLERKNOLL, INC.
For the period ended Nov 29, 2025. Filed Jan 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 29, 2025 · Filed Jan 5, 2026
MLKN$21.49-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-08-30; filed 2025-09-29.
0000066382-25-000112
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-11-29; filed 2026-01-05.
0000066382-26-000010
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 157 previous paragraphs and 210 current paragraphs.
82 unchanged; 49 reworded; 70 added; 22 removed; 4 previous and 9 current paragraphs rearranged.
Tables are not compared: 10 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (70)
Current report
•Operating expenses increased $9.2 million or 2.9% as compared to the same quarter of the prior year. The increase was driven primarily from costs associated with the expansion of the retail store footprint in North America and increased fixed and variable compensation costs.
Current report
A comparison of Net sales and orders during the second quarter to the prior year quarter by segment is as follows:
Current report
Net sales decreased $15.2 million or 1.6% in the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025. The decrease was primarily driven by:
Current report
•Decreased sales volumes in the North America Contract and International Contract segments contributed approximately $37 million and $13 million, respectively. These decreases were partially offset by:
Current report
•Price increases, net of discounting, which positively impacted net sales by approximately $19 million. This includes the favorable impact of pricing actions taken to help offset tariff cost pressures.
Current report
•Favorable foreign currency translation, which increased net sales by approximately $9 million.
Current report
•Increased sales volumes in the Global Retail segment increased net sales by $7 million.
Current report
Net sales increased $79.0 million or 4.3% in the first six months of fiscal 2026 compared to the first six months of fiscal 2025. The following items contributed to the change:
Current report
•Price increases, net of discounting, which positively impacted net sales by approximately $21 million. This includes the favorable impact of pricing actions taken to help offset tariff cost pressures.
Current report
•Favorable foreign currency translation, which increased net sales by approximately $17 million.
Current report
•Favorable channel and product mix positively impacted margin by approximately 90 basis points.
Current report
•The impact of incremental list price increases, net of contract price discounting, and excluding tariff-based pricing actions, increased gross margin percentage by 50 basis points. These increases were partially offset by:
Current report
•Tariff-related costs, net of pricing actions taken to help offset costs, adversely impacted gross margin by approximately 70 basis points.
Current report
•Unfavorable leverage on fixed costs due to lower sales volumes negatively impacted margin by 50 basis points.
Current report
Gross margin was 38.7% in the six months ended November 29, 2025, as compared to 38.9% for the same period in the prior fiscal year. The following factors summarize the major drivers of the year-over-year change in gross margin percentage:
Current report
•The impact of incremental list price increases, net of contract price discounting and excluding tariff specific pricing actions, increased gross margin percentage by 50 basis points.
Current report
• Favorable channel and product mix which positively impacted margin by approximately 40 basis points.
Current report
•Incremental costs of $4 million associated with the expansion of our retail store footprint.
Current report
•Increased fixed and variable compensation costs of approximately $4 million.
Current report
•Variable selling costs, including sales-based commissions and royalty expenses which rose by approximately $1 million compared to the prior year period.
Current report
Operating expenses increased by $2.7 million or 0.4% in the first six months of fiscal 2026 compared to the first six months of fiscal 2025. The following factors contributed to the change:
Current report
•Increased fixed and variable compensation costs of approximately $13 million.
Current report
•Incremental costs of $7 million associated with the expansion of our retail store footprint.
Current report
•These increases were partially offset by a reduction in acquisition-related integration charges and restructuring charges, which totaled approximately $28 million.
Current report
During the three months ended November 29, 2025, net Other expense was $16.0 million, representing a decrease of $1.6 million compared to the same period in the prior year. The change was primarily driven by lower interest expense of $2.5 million resulting from reduced debt levels, partially offset by a decrease in interest income of $0.8 million.
Current report
For the three month comparative period, Net sales decreased 3.1%(*) on both a reported and organic basis compared to the prior year period due to:
Current report
•Decreased sales volumes within the segment, contributing approximately $37 million to the decrease; offset in part by
Current report
•Increased sales volumes within the segment, contributing approximately $17 million to the increase;
Current report
For the three month comparative period, operating earnings decreased $5.5 million, or 11.1%, over the prior year period due to:
Current report
◦Price increases, net of discounting resulted in a positive impact of approximately 130 basis points.
Current report
◦Favorable product mix which increased margin by 60 basis points. Offset in part by:
Current report
•Increased Operating expenses of $1 million driven primarily by restructuring charges associated with facility consolidation initiatives and elevated compensation and benefit expenses.
Current report
For the six month comparative period, operating earnings increased $35.3 million, or 53.8%, over the prior year period due to:
Current report
◦The impact of incremental list price increases, net of contract price discounting, that increased gross margin percentage by approximately 70 basis points.
Current report
◦Favorable leverage of fixed costs due to increased production volumes as well as favorable product mixwhich had a positive impact on margin of approximately 50 basis points.
Current report
◦Reduced freight and distribution charges positively impacted margin by 20 basis points. These changes were offset in part by:
Current report
•Decreased Operating expenses of $15.1 million. The following factors contributed to the change:
Current report
◦Increased variable selling costs, including sales-based commissions and royalty expenses of approximately$6 million.
Current report
◦Increase of $2 million driven primarily by restructuring charges associated with facility consolidation initiatives.
Current report
◦Increased compensation and benefits of approximately $2 million.
Showing the first 40 of 70 passages. Open the source sections for the rest.
Removed paragraphs (22)
Previous report
•Operating expenses decreased $6.5 million or 2.0% as compared to the same quarter of the prior year. The decrease was driven primarily by a $27.8 million decrease in integration charges as compared to the same period of the prior year. This decrease was offset in part by an increase in variable sales expenses, compensation and benefit costs and costs associated with the opening of additional retail stores.
Previous report
The following summary includes the Company's view of the economic environment in which it operates:
Previous report
Net sales increased $94.2 million or 10.9% in the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. The increase was primarily driven by:
Previous report
•These impacts were partially offset by favorable leverage on fixed costs due to higher sales volumes.
Previous report
•Incremental costs of $3 million associated with the expansion of our retail store footprint.
Previous report
•Increased sales volumes within the segment, contributing approximately $54 million to the increase;
Previous report
For the three month comparative period, operating earnings increased $40.8 million, or 253.4%, over the prior year period due to:
Previous report
•Decreased Operating expenses of $16.5 million driven primarily by:
Previous report
For the three month comparative period, Net sales increased 14.4%, or 11.3%(*) on an organic basis compared to the prior year period. This growth was primarily driven by:
Previous report
•Higher sales volumes within the segment, contributing approximately $21 million to the increase;
Previous report
For the three month comparative period, operating earnings increased $4.0 million or 42.1%, over the prior year period due to:
Previous report
◦Incremental discounting, net of price increases attributable to regional and product sales mix, resulted in a negative impact of approximately 240 basis points.
Previous report
•Increased Operating expenses of $1.3 million. The following factors contributed to the change:
Previous report
◦Increased fixed and variable compensation costs of $3 million.
Previous report
For the three month comparative period, Net sales increased 6.4%, and 4.9%(*)on an organic basis compared to the prior year period. This growth was primarily driven by:
Previous report
•Favorable foreign currency translation, which increased net sales by approximately $3 million.
Previous report
•Price increases, net of incremental discounting positively impacted net sales by approximately $3 million. This includes the favorable impact of pricing actions taken to help offset tariff cost pressures.
Previous report
For the three month comparative period, Operating earnings decreased $3.9 million or 73.6% as compared to the prior year period due to:
Previous report
◦Increased freight and product distribution costs, net of freight revenue, as compared to the same period of the prior year which reduced margin by approximately 160 basis points.
Previous report
•Increased Operating expenses of $6.1 million. The following factors contributed to the change:
Previous report
◦Increased fixed and variable compensation costs of approximately $3 million.
Previous report
◦Incremental costs of $3 million associated with the expansion of our retail store footprint.
Reworded paragraphs (49)
Previous wording
•Net sales were $955.7 million and orders were $885.4 million, representing an increase of 10.9% and a decrease of 5.4%, respectively, when compared to the same quarter of the prior year. On an organic basis, which excludes the impact of foreign currency translation, Net sales were $947.4 million()and orders were $877.5 million(), representing an organic increase of 10.0%() and an organic decrease of 6.2%(), respectively, when compared to the same quarter of the prior year.
Current wording
•Net sales were $955.2 million and orders were $972.5 million, representing a decrease of 1.6% and an increase of 5.5%, respectively, when compared to the same quarter of the prior year. On an organic basis, which excludes the impact of foreign currency translation, Net sales were $946.5 million()and orders were $963.4 million(), representing an organic decrease of 2.5%() and an organic increase of 4.5%(), respectively, when compared to the same quarter of the prior year.
Previous wording
•Gross margin in the first quarter was 38.5%, a decrease of 50 basis points when compared to the same quarter of the prior year, related primarily to the impact of increased net tariff-related costs in the period, which were offset in part by benefit from leverage on higher sales volume.
Current wording
•Gross margin in the second quarter was 39.0%, an increase of 20 basis points when compared to the same quarter of the prior year, related primarily to the impact of favorable product and channel mix as well as the benefit from price increase actions, which more than offset cost pressures from tariffs and unfavorable leverage of fixed operations costs on lower sales volume.
Previous wording
•The effective tax rate was 26.5% compared to 66.2% for the same quarter of the prior year. The change as compared to the prior year resulted primarily from the level of net income or net loss in the periods as well as the impact of discrete items in each of the periods.
Current wording
•The effective tax rate was 22.5% compared to 21.8% for the same quarter of the prior year. The change as compared to the prior year resulted primarily from the level of net income or net loss in the periods as well as the impact of discrete items in each of the periods.
Previous wording
•Diluted earnings per share in the quarter was $0.29 as compared to diluted loss per share of $0.02 in the prior year. Adjusted diluted earnings per share was $0.45(), a 25.0%() increase as compared to the prior year quarter.
Current wording
•Diluted earnings per share in the quarter was $0.35 as compared to $0.49 in the prior year. Adjusted diluted earnings per share was $0.43(), a 21.8%() decrease as compared to the prior year quarter.
Previous wording
•The North America Contract segment in the first quarter reported Net sales totaling $533.9 million, up 12.1% compared to the prior year period on a reported and organic basis. North America Contract had new orders of $492.2 million, which represents a decrease of 8.2% from the prior year on both a reported and organic basis.
Current wording
•The North America Contract segment in the second quarter reported Net sales totaling $508.5 million, down 3.1% compared to the prior year period on a reported and organic basis. North America Contract had new orders of $506.8 million, which represents an increase of 4.8% from the prior year on both a reported and organic basis.
Previous wording
•The International Contract segment delivered Net sales in the first quarter of $167.5 million, an increase of 14.4% from the year-ago period on a reported basis and an increase of 11.3%() organically. New orders in this segment totaled $154.5 million, representing a year-over-year decrease of 6.5% on a reported basis and a decrease of 9.2%() organically.
Current wording
•The International Contract segment delivered Net sales in the second quarter of $170.9 million, a decrease of 6.3% from the year-ago period on a reported basis and a decrease of 9.2%() organically. New orders in this segment totaled $162.0 million, representing a year-over-year increase of 6.6% on a reported basis and an increase of 3.4%() organically.
Previous wording
•Net sales in the first quarter for the Global Retail segment totaled $254.3 million, an increase of 6.4% over the same quarter last year on a reported basis and an increase of 4.9%() organically. Orders in the quarter totaled $238.7 million, up 1.7% compared to the same period last year on a reported basis and up 0.3%() organically.
Current wording
•Net sales in the second quarter for the Global Retail segment totaled $275.8 million, an increase of 4.7% over the same quarter last year on a reported basis and an increase of 3.4%() organically. Orders in the quarter totaled $303.7 million, up 6.0% compared to the same period last year on a reported basis and up 4.5%() organically.
Previous wording
The remaining sections within Item 2 include additional analysis of the three months ended August 30, 2025, including discussion of significant variances compared to the prior year periods.
Current wording
The remaining sections within Item 2 include additional analysis of the three and six months ended November 29, 2025, including discussion of significant variances compared to the prior year periods.
Previous wording
The following table presents certain key highlights from the results of operations for the three months ended:
Current wording
The following table presents certain key highlights from the results of operations for the three and six months ended:
Previous wording
The following table presents select components of the Company's Condensed Consolidated Statements of Comprehensive Income (Loss) as a percentage of Net sales, for the three months ended:
Current wording
The following table presents select components of the Company's Condensed Consolidated Statements of Comprehensive Income (Loss) as a percentage of Net sales, for the three and six months ended:
Previous wording
The following chart presents graphically the primary drivers of the year-over-year change in Net sales for the three months ended August 30, 2025. The amounts presented in the graph are expressed in millions and have been rounded.
Current wording
The following chart presents graphically the primary drivers of the year-over-year change in Net sales for the three and six months ended November 29, 2025. The amounts presented in the graph are expressed in millions and have been rounded.
Previous wording
•Higher sales volumes in the North America Contract, International Contract, and Global Retail segments, contributed approximately $54 million, $21 million, $9 million, respectively.
Current wording
•Increased sales volumes in the North America Contract, Global Retail and International Contract segments contributed approximately $17 million, $15 million and $9 million, respectively.
Previous wording
Gross margin was 38.5% in the first quarter of fiscal 2026 as compared to 39.0% in the first quarter of fiscal 2025. The year-over-year change in gross margin percentage was primarily driven by the following factors:
Current wording
Gross margin was 39.0% in the second quarter of fiscal 2026 as compared to 38.8% in the second quarter of fiscal 2025. The year-over-year change in gross margin percentage was primarily driven by the following factors:
Previous wording
The following chart presents graphically the primary drivers of the year-over-year change in Operating expenses for the three months ended August 30, 2025. The amounts presented in the graphs are expressed in millions and have been rounded.
Current wording
The following chart presents graphically the primary drivers of the year-over-year change in Operating expenses for the three and six months ended November 29, 2025. The amounts presented in the graphs are expressed in millions and have been rounded.
Previous wording
Operating expenses decreased by $6.5 million or 2.0% in the first quarter of fiscal 2026 compared to the prior year period. The following factors contributed to the change:
Current wording
Operating expenses increased by $9.2 million or 2.9% in the second quarter of fiscal 2026 compared to the prior year period. The following factors contributed to the change:
Previous wording
•Foreign currency translation also contributed an unfavorable impact of approximately $2 million relative to the prior year.
Current wording
•Foreign currency translation also contributed an increase in operating expenses of approximately $2 million relative to the prior year.
Previous wording
During the three months ended August 30, 2025, net Other expense was $24.8 million, representing an increase of $7.9 million compared to the same period in the prior year. The change was primarily driven by a loss on extinguishment of debt of approximately $7.8 million incurred in connection with the refinancing of term loan debt during the current period.
Current wording
During the six months ended November 29, 2025, net Other expense was $40.8 million, representing an increase of $6.3 million compared to the same period in the prior year. The change was primarily driven by a loss on extinguishment of debt of approximately $7.8 million incurred in connection with the refinancing of term loan debt during the current year, offset in part by lower interest expense resulting from reduced debt levels.
Previous wording
The charts below present the relative mix of net sales and operating earnings across each of the Company's segments during the three month period ended August 30, 2025. This is followed by a discussion of the Company's results, by reportable segment. The amounts presented in the charts are in millions and have been rounded.
Current wording
The charts below present the relative mix of net sales and operating earnings across each of the Company's segments during the three and six month periods ended November 29, 2025. This is followed by a discussion of the Company's results, by reportable segment. The amounts presented in the charts are in millions and have been rounded.
Previous wording
•Price increases, net of incremental discounting positively impacted net sales by approximately $4 million. This includes the favorable impact of tariff-related pricing actions.
Current wording
•Price increases, net of discounting positively impacted net sales by approximately $21 million. This includes the favorable impact of tariff-related pricing actions.
Previous wording
For the three month comparative period, Net sales increased 12.1%(*)on both a reported and an organic basis compared to the prior year period. This growth was primarily driven by:
Current wording
For the six month comparative period, Net sales increased 4.1%(*)on both a reported and an organic basis compared to the prior year period. This growth was primarily driven by:
Previous wording
◦Favorable leverage on fixed costs due to higher sales volumes, which contributed approximately 110 basis points to gross margin improvement.
Current wording
◦Loss of leverage on fixed costs due to lower sales volumes, which contributed approximately 80 basis points to gross margin decline.
Previous wording
◦These were partially offset by the impact of tariff-related costs, which more than offset pricing actions taken to help offset tariffs. The net impact of tariffs in the quarter as compared to the prior year adversely impacted gross margin by approximately 130 basis points.
Current wording
◦Tariff-related costs, which more than offset pricing actions taken to help offset tariffs. The net impact of tariffs in the quarter as compared to the prior year adversely impacted gross margin by approximately 50 basis points.
Previous wording
◦Reduced freight and product distribution costs increased margin by approximately 80 basis points.
Current wording
◦Increased freight and product distribution costs increased margin by approximately 30 basis points.
Previous wording
•Increased Gross margin of $24.3 million due to the increase in sales noted above and an increase in gross margin percentage of 60 basis points. The increase in gross margin percentage was due primarily to:
Current wording
•Increased Gross margin of $20.2 million due to the increase in sales discussed above and an increase in gross margin percentage of 50 basis points. The increase in gross margin percentage was due primarily to:
Previous wording
•A reduction in acquisition-related integration charges, which totaled approximately$28 million. This benefit was partially offset by:
Current wording
◦A reduction in acquisition-related integration charges, which totaled approximately $25 million. This benefit was partially offset by:
Previous wording
•Favorable foreign currency translation, which increased net sales by approximately $5 million.
Current wording
•These decreases were partially offset by favorable foreign currency translation, which increased net sales by approximately $5 million.
Previous wording
•These gains were partially offset by incremental discounting attributable to regional and product sales mix, net of price increases, which adversely impacted net sales by approximately $5 million.
Current wording
•These gains were partially offset by incremental discounting attributable to regional and product sales mix, net of price increases, which adversely impacted net sales by approximately $9 million.
Previous wording
•Increased Gross margin of $5.3 million driven by the higher sales volumes explained above, which more than offset a decline in gross margin percentage of 150 basis points. The decrease in gross margin percentage was due primarily to:
Current wording
•Increased Gross margin of $0.7 million driven by the higher sales volumes explained above, which more than offset a decline in gross margin percentage of 80 basis points. The decrease in gross margin percentage was due primarily to:
Previous wording
◦These pressures were partially offset by favorable operating leverage on fixed costs resulting from increased sales volumes, which contributed approximately 170 basis points to margin improvement.
Current wording
◦These pressures were partially offset by favorable operating leverage on fixed costs resulting from increased sales volumes, which contributed approximately 20 basis points to margin improvement.
Previous wording
◦These increases were partially offset by a reduction in acquisition-related integration charges, which totaled approximately $3 million.
Current wording
◦These increases were partially offset by a reduction in acquisition-related integration charges.
Previous wording
•Price increases, net of incremental discounting, positively impacted net sales by approximately $2 million. This includes the favorable impact of pricing actions taken to help offset tariff cost pressures.
Current wording
•Price increases, net of discounting positively impacted net sales by approximately $2 million. This includes the favorable impact of pricing actions taken to help offset tariff cost pressures.
Previous wording
•Increased Gross margin of $2.2 million driven by the higher sales volumes explained above, which was offset by a decline in gross margin percentage of 190 basis points. The decrease in gross margin percentage was due primarily to:
Current wording
•Increased Gross margin of $3.9 million driven by the higher sales volumes explained above, which was offset by a decline in gross margin percentage of 70 basis points. The decrease in gross margin percentage was due primarily to:
Previous wording
•Tariff-related costs, net of pricing actions taken to help offset costs, adversely impacted gross margin by approximately 110 basis points.
Current wording
◦Tariff-related costs, net of pricing actions taken to help offset costs, which adversely impacted gross margin by approximately 110 basis points.
Previous wording
◦These margin percentage pressures were partially offset by favorable operating leverage on fixed costs driven by increased sales volumes and a more favorable product mix which added approximately 60 basis points to margin improvement.
Current wording
◦These margin percentage pressures were partially offset by favorable operating leverage on fixed costs driven by increased sales volumes and a more favorable product mix which added approximately 80 basis points to margin improvement.
Previous wording
•Increased fixed and variable compensation costs of approximately $9 million.
Current wording
◦Increased fixed and variable compensation costs of approximately $2 million.
Previous wording
◦Tariff-related costs, net of pricing actions taken to help offset costs, which adversely impacted gross margin by approximately 50 basis points.
Current wording
◦Tariff-related costs, net of pricing actions taken to help offset costs, which adversely impacted gross margin by approximately 120 basis points.
Previous wording
Corporate unallocated expenses totaled $18.3 million for the first quarter of fiscal 2026, an increase of $2.6 million from the first quarter of fiscal 2025 related primarily to fixed and variable compensation expense.
Current wording
Corporate unallocated expenses totaled $15.5 million for the second quarter of fiscal 2026, a decrease of $2.0 million from the second quarter of fiscal 2025 related primarily to lower fixed and variable compensation expense.
Previous wording
The table below summarizes the net change in Cash and cash equivalents for the three months ended as indicated.
Current wording
The table below summarizes the net change in Cash and cash equivalents for the six months ended as indicated.
Previous wording
The principal source of our operating cash flow is net earnings, meaning cash receipts from the sale of our products, net of costs to manufacture, distribute, and market our products. Net cash provided by operating activities for the three months ended August 30, 2025, totaled$9.4 million compared to$21.1 million in the same period of the prior year. The decrease in cash inflow is due primarily to a net increase in working capital. Our working capital consists primarily of receivables from customers, inventory, prepaid expenses, accounts payable, accrued compensation, and accrued other expenses. The following all affect these account balances:
Current wording
The principal source of our operating cash flow is net earnings, meaning cash receipts from the sale of our products, net of costs to manufacture, distribute, and market our products. Net cash provided by operating activities for the six months ended November 29, 2025, totaled $74.0 million compared to $76.4 million in the same period of the prior year. The decrease in cash inflow is due primarily to a net increase in working capital. Our working capital consists primarily of receivables from customers, inventory, prepaid expenses, accounts payable, accrued compensation, and accrued other expenses. The following all affect these account balances:
Previous wording
Cash used in investing activities for the three months ended August 30, 2025, was $30.5 million, as compared to $22.3 million in the same period of the prior year. The increase was primarily driven by higher capital expenditures in the current year.
Current wording
Cash used in investing activities for the six months ended November 29, 2025, was $60.3 million, as compared to $44.8 million in the same period of the prior year. The increase was primarily driven by higher capital expenditures in the current year.
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
•Tariff-related costs, net of pricing actions taken to help offset costs, adversely impacted gross margin by approximately 110 basis points. This increase was partially offset by:
Current report — wording carried from elsewhere
•Price increases, net of discounting positively impacted net sales by approximately $25 million. This includes the favorable impact of tariff-related pricing actions.
Current report — wording carried from elsewhere
•Decreased Gross margin of $4.1 million due to the decrease in sales noted above offset by an increase in gross margin percentage of 30 basis points. The increase in gross margin percentage was due primarily to:
Current report — wording carried from elsewhere
◦Tariff-related costs, which more than offset pricing actions taken to help offset tariffs. The net impact of tariffs in the current period as compared to the prior year adversely impacted gross margin by approximately 90 basis points.
Current report — wording carried from elsewhere
•Incremental discounting attributable to regional sales mix, net of price increases, which adversely impacted net sales by approximately $4 million.
Current report — wording carried from elsewhere
◦Tariff-related costs adversely impacted gross margin by approximately 60 basis points.
Current report — wording carried from elsewhere
•Favorable foreign currency translation, which increased net sales by approximately $4 million.
Current report — wording carried from elsewhere
◦Increased fixed and variable compensation costs of approximately $5 million.
Current report — wording carried from elsewhere
◦Variable selling costs, including sales-based commissions and royalty expenses which rose by approximately $2 million compared to the prior year period.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•Favorable foreign currency translation, which increased net sales by approximately $8 million.
Previous report — wording carried elsewhere
◦A reduction in acquisition-related integration charges, which totaled approximately $25 million. This benefit was partially offset by increased variable selling costs, including sales-based commissions and royalty expenses.
Previous report — wording carried elsewhere
◦Tariff-related costs adversely impacted gross margin by approximately 50 basis points.
Previous report — wording carried elsewhere
◦Unfavorable foreign currency translation further reduced margin by approximately 40 basis points.