by What’s happening: Tempur Sealy International Inc. announced financial results for the fourth quarter and year ended Dec. 31, 2022.
Key highlights include:
- Total net sales decreased 12.7% to $1,187.4 million as compared to $1,359.6 million in the fourth quarter of 2021, with a decrease of 12.2% in the North America business segment and a decrease of 14.3% in the international business segment.
- Gross margin was 41.2% as compared to 44.5% in the fourth quarter of 2021. Adjusted gross margin was 41.6% in the fourth quarter of 2022. There were no adjustments to gross margin in the fourth quarter of 2021.
- Operating income decreased 41.3% to $147.1 million as compared to $250.8 million in the fourth quarter of 2021. Adjusted operating income was $156.8 million in the fourth quarter of 2022. There were no adjustments to operating income in the fourth quarter of 2021.
- Net income decreased 42.2% to $101.7 million as compared to $175.8 million in the fourth quarter of 2021. Adjusted net income decreased 45.3% to $96.2 million as compared to $175.9 million in the fourth quarter of 2021.
- Earnings per diluted share decreased to $0.57 as compared to $0.88 in the fourth quarter of 2021. Adjusted EPS(1) decreased 38.6% to $0.54 as compared to $0.88 in the fourth quarter of 2021.
| SUMMARY FINANCIAL INFORMATION | |||||||||||
| (in millions, except percentages and per common share amounts) | Three Months Ended | % Reported Change | Year Ended | % Reported Change | |||||||
| December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||
| Net sales | $ 1,187.4 | $ 1,359.6 | (12.7) % | $ 4,921.2 | $ 4,930.8 | (0.2) % | |||||
| Net income | $ 101.7 | $ 175.8 | (42.2) % | $ 455.7 | $ 624.5 | (27.0) % | |||||
| Adjusted net income(1) | $ 96.2 | $ 175.9 | (45.3) % | $ 467.9 | $ 651.7 | (28.2) % | |||||
| EPS | $ 0.57 | $ 0.88 | (35.2) % | $ 2.53 | $ 3.06 | (17.3) % | |||||
| Adjusted EPS (1) | $ 0.54 | $ 0.88 | (38.6) % | $ 2.60 | $ 3.19 | (18.5) % |
Why it matters: Company Chairman and CEO Scott Thompson says the fourth quarter and full-year results are the second best sales and adjusted net income results for like periods in the company’s history.
“Although the robust market we experienced in 2021 represented a challenging comparison for 2022, we outperformed the global bedding market, expanding our leading position in the global industry,” he says. “We continued to invest in industry-leading product innovation and advertising spend, expand our manufacturing capacity, drive omnichannel expansion worldwide, and execute on our balanced capital allocation strategy. As we enter 2023, we expect success across our brand, product and omnichannel initiatives to deliver growth on both the top and bottom line as the industry experiences a stable but subdued demand environment.”
