Temper Sealy Reports Gains in Second Quarter

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NEWS

Tempur Sealy International said second-quarter sales jumped 4.8% and profits rose 2% amid gains in its domestic and international markets.

For the quarter ended June 30, worldwide sales totaled $1.27 billion, up from $1.21 billion in last year’s second quarter. Net income was $92.4 million or 52 cents per share. That was up from $90.6 million or 51 cents per share, in the same quarter last year.

In North America, sales were up 5.4% to $1.02 billion, while international sales increased 2.7% to $252.9 million.

“Our continued market outperformance in the second quarter reflects the momentum we are driving through our execution of our long-term initiatives,” said Scott Thompson, chairman and CEO of the Lexington, Kentucky-based mattress major. “All three of our leading U.S. brands — Tempur, Sealy and Stearns & Foster — performed well in the quarter, significantly ahead of where we believe the U.S. industry trended.”

He said North American sales were driven by successful product launches for the Tempur and Stearns & Foster brands, while its international business was powered by the successful Tempur International product launch and the solid performance of its Dreams retail chain.

“This quarter’s results were delivered in markets that were a bit less robust than we expected,” Thompson said. “While we look forward to a recovering market, this challenged environment has allowed us to demonstrate the strength of our global business model as we realized solid earnings and strong operating cash flows.”

For the six months ended June 30, worldwide sales rose 1.1% to $2.48 billion, but net income fell 19.7% to $177.7 million or $1.01 per share.

Thompson said the company is still on track to complete its pending acquisition of Mattress Firm in 2024. Tempur Sealy currently is responding to the Federal Trade Commission’s second request for information about the deal, he explained.

Because of the pending acquisition, Mattress Firm has begun disclosing limited quarterly financial information. For the 13 weeks ended June 27 — the third quarter of its fiscal year — the retailer said sales fell 6% to $984.1 million. Net income tumbled more than 60% to $18.8 million.

The retailer said it ended the quarter with 2,326 stores.