Tempur Sealy International said third-quarter sales edged up 1.8% to $1.3 billion as the company’s business outside of North America recorded double-digit growth.
Sales in North America slipped 0.8% to $1.02 billion, while international sales rose 12.4% to $284.7 million. Gross margin in the international segment also jumped to 57.3% from 56.6% in last year’s third quarter.
Those numbers helped drive a 14.7% increase in net income for the quarter. The bottom line totaled $130 million, or 73 cents per share, in the most recent quarter, compared with $113.3 million, or 64 cents per share, in the same quarter last year.
”Our global market outperformance, led by double-digit growth in our international segment, resulted in consolidated sales growth year-over-year despite the global bedding industry continuing to perform significantly below historical trends,” said Scott Thompson, chairman and CEO. “We continue to see our investments in product, people, and advertising as foundational to our long-term success.”
The North American numbers included $878.4 million in sales through the wholesale channel — down 0.8% from last year’s third quarter — and sales of $136.9 million from the direct channel. That was down 1.2% from the comparable quarter. The direct channel includes sales from company-owned retail stores, online and call center sales.
Gross margin in the North American segment was 42%, the same as last year’s third quarter.
For the nine months ending Sept. 30, worldwide sales totaled $3.72 billion, down 0.8% from $3.75 billion in the first nine months of 2023. Nine-month net income was $312.4 million, or $1.75 per share. That was up 7.4% from $291 million, or $1.64 per share, in the comparable period.
For the 2024 calendar year, Tempur Sealy said it expects sales to be slightly below 2023. It is projecting adjusted earnings per share of $2.45 to $2.55 — a figure that excludes several one-time charges.
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