Boosted by its recent acquisition of Mattress Firm, Somnigroup reported record sales, profits and operating cash flow in the third quarter.
The company said sales increased 63.3% to $2.12 billion — an increase driven primarily by $1.07 billion in sales from Mattress Firm, which was acquired by Somnigroup on Feb. 5. The sales figure was offset by the accounting elimination of $313.7 million in sales to Mattress Firm from its Tempur Sealy North American manufacturing segment.
Net income jumped 36.5% to $177.4 million, or 83 cents per share, and gross margin increased to 44.9% from 42.4% in last year’s third quarter.
Scott Thompson, chairman and CEO, said the results were driven by “strong operational execution across all of Somnigroup’s business units, augmented by progress on our acquisition-related sales and cost synergy initiatives.”
“This quarter’s strong results were underpinned by slightly improving bedding industry trends,” Thompson added. “We are encouraged by our success this quarter and are well positioned to further leverage our leading manufacturing and retailing capabilities, trusted brands and broad omni-channel distribution footprint to capitalize on improvements across markets.”
The company said sales from Tempur Sealy North American totaled $736.1 million, down from $1.02 billion in the same quarter last year. The decrease was attributed to the elimination of sales to Mattress Firm, as well as the divestiture of its Sleep Outfitters retail chain.
Tempur Sealy International sales were $315.7 million, an increase of 10.9% from last year’s third quarter.
For the nine months ending Sept. 30, total sales were $5.61 billion, an increase of more than 50% from the first nine months of 2024.
Nine-month net income totaled $243.3 million or $1.17 per share. That was down from $312.4 million or $1.75 per share in the same period last year.
For the 2025 calendar year, Somnigroup boosted its projection of adjusted earnings per share to a range of $2.60 to $2.75. That’s up from an August projection of $2.40 to $2.70.
The new projection accounts for approximately 11 months of Mattress Firm operations, net of intercompany sales, and the divestiture of Sleep Outfitters and 73 Mattress Firm stores, which closed May 1.
