We estimate 2Q:F26 revenue declined 2.5% from a year earlier to $946.6 million, and project EPS declined 25% to $0.42. The decline is coming from MillerKnoll's contract furniture segment, which is offsetting projected growth in its retail business. In addition to lower contract volumes, tariff costs and higher spending in the retail segment are reducing earnings. As part of its growth investments in its retail business, MillerKnoll is expanding its store footprint. We increase our cost estimates tied to this expansion and lower our F2027 earnings estimates. At the end of 1Q:F26, MillerKnoll's net debt stood at $1.18 billion. Based on MillerKnoll's bank calculation of EBITDA, net leverage was 2.9x at the end of the quarter. Given the cash we expect MillerKnoll to generate, we think its debt is manageable and leverage continues to decline in F2026-F2027. Our moderate risk rating therefore remains intact. We lower our price target to $32 (from $35), based on an unchanged 14x our new F2027 EPS estimate of $2.28 (from $2.51).