Greetings everyone, and welcome to the MillerKnoll Incorporated 2026 Annual Shareholder Meeting. This annual meeting webcast is being recorded and will be available for replay on MillerKnoll's website. The presentation and any remarks made today may include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Any forward-looking statements made are as of today, and we assume no obligation to update or supplement these statements. These risks and uncertainties include those risk factors discussed in the company's reports on Form 10-K and 10-Q, and other reports filed with the Securities and Exchange Commission.
Hosting today's meeting is John Hoke, Chair of the Board of Directors, and Mr. Hoke is joined by Jeff Stutz, Interim Chief Executive Officer, Kevin Veltman, Chief Financial Officer, Wendy Watson, VP of Investor Relations, and Jackie Rice, Chief Legal Officer and Corporate Secretary. Mr. Hoke will open the meeting and conduct the formal business agenda, followed by a brief business overview by Mr. Stutz. Following Mr. Stutz's remarks, there will be an opportunity for questions submitted by shareholders. Please begin submitting those questions now using the webcast directions on your screen.
As noted in the proxy statement, only questions related to the purpose of this meeting and appropriate to raise in person will be accepted. Questions will be answered in the time available. Any questions pertaining to meeting matters, including those that cannot be answered during the meeting due to time constraints, will be posted online and answered on MillerKnoll's website. If you have already submitted your proxy, then your votes have been tallied. If you wish to vote during the meeting or change your note on a previously submitted proxy, you may do so online now.
Mr. Hoke will begin today's meeting. Please go ahead, sir.
Greetings, and welcome to the 2026 Annual Meeting of the Shareholders of MillerKnoll. I am John Hoke, Chair of the Board of Directors of MillerKnoll. On behalf of our Board of Directors, I'd like to welcome you to MillerKnoll's 2026 Annual Shareholders Meeting, and I now formally call the 2026 MillerKnoll Annual Shareholder Meeting to order. I would also like to welcome the other MillerKnoll board members participating, including Tina Edmundson, Doug French, Jeanne Gang, Lisa Kro, John Maeda, Heidi Manheimer, Mike C. Smith, Mike R. Smith, and Claire Spofford.
With that, I'll now turn to the formal matters of today's business. First, as Chair, I will waive the readings of last year's minutes in the interest of time. Next, I have received an affidavit of distribution which certifies that all shareholders of record as of August 14, 2026, were provided access to a notice of the annual meeting, along with access to the proxy statement, proxy card, and annual report. I wish to confirm that Kevin Veltman, our Chief Financial Officer, has been appointed Inspector of Election for the proxy vote.
Having received the quorum report from Kevin, I am assured that we do have a quorum. We are pleased to report that approximately 94% of the shares are represented at the meeting, in person or by proxy. At this time, I declare the proxy voting polls closed. Now for the results of the proxy vote. I am pleased to announce that all four proposals, as recommended by the Board of Directors, have been approved. Jeanne Gang, Mike R. Smith, and Claire Spofford have been elected as directors for a three-year term, serving until the 2029 Annual Shareholder Meeting.
The compensation of our named executive officers has been approved on an advisory basis. The appointment of KPMG LLP as the company's independent auditor has been ratified as the registered public accounting firm for our fiscal year ending May 29, 2027. Shareholders have also approved the MillerKnoll Inc 2026 long-term incentive plan. With those matters being covered and there being no further business to be brought before this meeting, I hereby declare that this meeting is now officially adjourned. Jeff Stutz, MillerKnoll's Interim CEO, would now like to present a brief overview of the business. Following Jeff's remarks, we will have the opportunity to take questions in the scheduled time remaining. If you have a question, please begin submitting those now using the directions on your computer screen.
With that, I'll turn the meeting over to Jeff.
Thank you, John, and greetings everyone. It is good to be with you. I'm happy to share that we had a strong finish to fiscal year 2026, with net sales $3.84 billion, up 5% from the prior year, with $1.32 of diluted earnings per share on a reported basis, and $1.86 of adjusted diluted earnings per share. For the full fiscal year, we generated $200 million in cash flow from operations, invested $122 million in capital expenditures, reduced our total outstanding debt by $41 million, and returned approximately $67 million to our shareholders through the combination of dividends and share repurchases. Entering fiscal 2027, we have three clear areas of focus. First, we are elevating the level of operational discipline we bring to setting priorities and running the business by concentrating our resources on the initiatives we believe can create the greatest value for our shareholders.
Second, we are maintaining rigorous cost discipline and aligning expenses with revenue levels. Third, we are sharpening our focus on capital allocation, cash flow, and balance sheet strength to support debt reduction while preserving our capacity to invest in growth. As a collective of design driven brands that go to market through both contract and retail channels, MillerKnoll has a competitive advantage that we use to drive value. Over the past year, our brands have introduced new products that extend our leadership in design and performance. During the Design Days trade show in Chicago, we debuted more than 40 new product lines and extensions. From healthcare solutions to new workplace and residential offerings, our pipeline reflects both the depth of our portfolio and our ability to respond to evolving customer needs.
MillerKnoll operates across more than 100 countries, supported by our robust dealer network and international footprint that allows us to serve customers at scale. Last year, we invested in our global showroom network, an essential driver of customer engagement and conversion. From the expansion of our Chicago flagship to updates in key markets, including New York, Monterrey, São Paulo, and Shanghai, we enhanced how customers experience the breadth of our portfolio. In retail, we also expanded our reach and opened 15 new DWR and Herman Miller locations across priority U.S. markets, reflecting our ongoing commitment to growing this channel and introducing modern designs to new audiences. Our leadership in design, sustainability, and culture is well-recognized.
We were named to the TIME magazine list of America's best companies for 2026, recognized by the Civic 50 Points of Light as one of the 50 most community-minded companies in the United States. MillerKnoll made Forbes 2026 list of America's best employers for company culture. As we mark our five-year anniversary as MillerKnoll, it's important to maintain our focus and look forward. Our number one priority is growing profitably and driving value for our associates and shareholders. Thanks.
Now I'll turn the call back over to John.
Thank you, Jeff. At this time, seeing no questions, I'd like to close our meeting as we began. To thank you for joining us. We hope you found this presentation useful and look forward to connecting with you again in the future.
Thank you for attending today's 2026 MillerKnoll Annual Shareholder Meeting. Enjoy your day.