Tempur Sealy International Inc. reported stellar earnings and sales in the second quarter of fiscal 2019. The mattress major, headquartered in Lexington, Kentucky, announced earnings of $41.6 million (up 82.5% compared with the second quarter of 2018) on net sales of $722.8 million (up 9.5%).
Adjusted earnings per share were $0.79, compared with $0.57 in the first quarter of 2019.
“Our strong momentum from the first quarter continued into the second quarter and beyond,” said Scott Thompson, Tempur Sealy chair and chief executive officer. “The combination of our powerful omnichannel distribution platform and our innovative products delivered double-digit revenue and earnings growth.
“Our North America operations had a standout quarter driven by our new Breeze line of mattresses and 78% growth
in our direct-to-consumer channel. These results, combined with our future expected earnings growth outlook, support a return to our share repurchase program. We expect our leverage ratio to move to the lower end of our targeted range of three to four times debt to adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the near term, while at the same time, subject to market conditions, we are targeting quarterly share repurchases of approximately $50 million.”
Sales in North America rose 11.4% to $588.1 million. International sales increased 2% to $134.7 million.
In North America, second-quarter sales in the wholesale channel grew 6.9%, to $528.5 million, and in the direct-to-consumer channel, they increased 77.9% to $59.6 million, the company said. The growth was driven primarily by company-owned Tempur-Pedic stores and Tempur Sealy’s recent acquisition of retailer Sleep Outfitters.
The company raised its financial guidance for 2019, with EBITDA expected to range from $450 million to $480 million (previously, $435 million to $475 million).