Tempur Sealy International Inc. announced financial results for the first quarter ended March 31 and reaffirmed financial guidance for the full year 2024.
“We are pleased to report solid first-quarter sales, earnings and record operating cash flow against a global backdrop which appears to be at a historical nadir,” says Chairman and CEO Scott Thompson. “The strong reception to our newly launched innovative products and our ongoing investment in compelling marketing to support the industry, combined with our broad-based omnichannel reach and our commitment to driving operational efficiencies, drove our industry outperformance in the first quarter. Although we look forward to the market’s recovery, this recessionary environment provides opportunity to highlight the strength of our global business model and our leading competitive position. We continue to invest in our key initiatives and expect to emerge from the current downturn positioned well for long-term success.
- Total net sales decreased 1.5% to $1,189.4 million as compared to $1,208.1 million in the first quarter of 2023, with a decrease of 2.0% in the North America business segment and consistent sales in the international business segment.
- Gross margin was 43.1% as compared to 41.4% in the first quarter of 2023.
- Operating income decreased 8.2% to $131.5 million as compared to $143.3 million in the first quarter of 2023.
- Net income decreased 10.6% to $76.3 million as compared to $85.3 million in the first quarter of 2023.
Thompson adds, “Regarding the pending Mattress Firm transaction, which we have been working on for two and half years, we believe it will unlock benefits for customers and shareholders. We continue to work closely with the FTC to advance the transaction approval process. As previously disclosed, we anticipate the FTC will complete its review in the second quarter and we are targeting closing the transaction in 2024. We look forward to bringing the Mattress Firm team onboard.”
