Tempur Sealy International Inc. announced financial results for the second quarter ended June 30.
- Total net sales decreased 2.8% to $1,233.6 million as compared to $1,269.7 million in the second quarter of 2023, with a decrease of 3.8% in the North America business segment and consistent sales in the International business segment. On a constant currency basis(1), total net sales decreased 2.6%, with a decrease of 3.8% in the North America business segment and an increase of 1.9% in the International business segment.
- Gross margin was 44.9% as compared to 42.7% in the second quarter of 2023.
- Operating income increased 9.1% to $173.3 million as compared to $158.8 million in the second quarter of 2023. Adjusted operating income(1) increased 5.1% to $180.6 million as compared to $171.8 million in the second quarter of 2023.
- Net income increased 14.8% to $106.1 million as compared to $92.4 million in the second quarter of 2023. Adjusted net income(1) increased 9.5% to $111.7 million as compared to $102.0 million in the second quarter of 2023.
Company Chairman and CEO Scott Thompson comments, “We are pleased to see our global market outperformance mitigate the impact of softer than anticipated industry volumes. Despite an estimated mid-single-digit industry decline over the quarter, more than our anticipated low-single-digit decline for the period, our sales were only slightly below internal expectations. Our strong gross margin performance and solid cost controls resulted in healthy earnings growth in the second quarter.
“I am pleased to share that we recently executed a new post-closing supply agreement with one of Mattress Firm’s medium-size mattress suppliers, he continues. “This is one of several post-closing supply agreements we have executed in preparation for our planned acquisition of Mattress Firm, and is consistent with our plan for Mattress Firm to continue as a multibranded retailer. Regarding the FTC’s challenge of the Mattress Firm acquisition, we are confident in the pro-competitive rationale for this transaction and look forward to presenting the facts of our case. We believe that a successful litigation process can be completed in the coming months, which would allow us to close the transaction in late 2024 or early 2025.”
The FTC’s Office of Administrative Law Judges has set a hearing for the proposed $4 billion Mattress Firm deal for Dec. 4.
An order signed by chief Administrative Law Judge D. Michale Chappell explains that the three-month process begins Aug. 27 when the FTC files its preliminary proposed fact witness list. Tempur Sealy and Mattress Firm then have a week to file their proposed fact witness list.
