Driven by the addition of sales from newly acquired Mattress Firm, Somnigroup International said first-quarter sales jumped 34.9% to $1.6 billion.
The top line included $593.7 million in Mattress Firm sales between Feb. 5, when the acquisition closed, and the end of the quarter on March 31. But the figure was offset by some $130.1 million in sales from its mattress manufacturing arm, Tempur Sealy North America, to Mattress Firm during the same period.
Somnigroup said costs related to the Mattress Firm acquisition were largely responsible for the net loss of $33.1 million, or 17 cents per share, in the quarter. In last year’s first quarter, the company recorded net income of $76.3 million, or 43 cents per share.
“Our results this quarter both reflect the transformational acquisition of Mattress Firm and highlight our ability to navigate a weak global market,” said Scott Thompson, chairman and CEO. “All of our business units, domestically and internationally, successfully made progress on their growth opportunities as we leverage the core strengths of our business, including scale, operational flexibility and manufacturing capabilities.”
The company said Tempur Sealy North America’s wholesale sales totaled $706.2 million, down from $901.1 million in last year’s first quarter. A sizable portion of the decline was due to the elimination of $130.1 million in sales to Mattress Firm, but the company attributed 8% of the drop to “continued macroeconomic pressures impacting U.S. consumer behavior.”
The business segment’s gross margin fell to 34% from 37.4% in last year’s first quarter.
Somnigroup said Tempur Sealy International sales increased 5.7% to $304.8 million. International gross margin improved to 49% from 47.7% in the opening quarter of 2024.
The company also trimmed its projection for adjusted earnings per share to $2.30 to $2.65 for the 2025 calendar year. That was down from a February projection of $2.60 to $3 per share. Adjusted earnings per share don’t include costs from the Mattress Firm acquisition and certain other one-time expenses.
The company didn’t release a 2025 sales projection or other financial estimates due to the “uncertainty of the macroeconomic environment.” Much of the uncertainty is driven by “the possible imposition of new tariffs or retaliatory tariffs, increases in existing tariffs and other changes in trade policy and regulations,” the company said.
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