Tempur Sealy Q2 reflects U.S. industry’s ‘toughest volume decline’

LEXINGTON, Ky. — While total net sales for the second quarter ended June 30 were up 3.6%, the Tempur Sealy International CEO noted that the overall U.S. mattress business had its “toughest volume decline in 15 years.”

Tempur Sealy net sales for the quarter came in at $1.211 billion, up from $1.169 billion in the same period last year. On a constant currency basis, the company saw a decrease of 4.6% in the North American business segment and an increase of 68.2% in the international business segment, primarily due to the acquisition of Dreams in August 2021.

Net income for the period was $90.6 million, compared with $140.8 million in the 2021 quarter. Earnings per diluted share for the period was 51 cents per share, compared with 69 cents per share last year.

“During the quarter, the overall North America operating environment deteriorated, driven by various macroeconomic pressures,” said Scott Thompson, CEO. “We believe the overall U.S. mattress business, our largest market, had its toughest volume decline in 15 years, with industry units down 20% to 25% compared with last year’s record second quarter volumes.

“We have adjusted our hiring expectations and near-term capacity investments, and we also implemented a price increase in the U.S. in late June to neutralize the dollar impact of commodity inflation.”

Segment by segment, North America net sales decreased to $964.7 million, compared with $1.01 billion last year. International net sales increased to $246.3 million, compared with $155.3 million in the same period of 2021.

Tempur Sealy ended the second quarter of 2022 with total debt of $2.9 billion and consolidated indebtedness less netted cash of $2.8 billion.

The company has updated its earnings guidance for the year, expecting adjusted EPS between $2.60 to $2.80 and expecting consolidated sales to be consistent with the prior year.

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