In Q1, Tempur Sealy Beats on Income and Revenue

Tempur Sealy International Inc. reported net earnings of $130.5 million in its first fiscal quarter of 2021, reflecting a 119% increase compared with the prior-year quarter. On a per share (diluted) basis, the Lexington, Kentucky-based mattress major had net income of $0.62, surpassing the Zacks Consensus Estimate of $0.51 per diluted share. 

Net sales topped $1.04 billion, also beating analysts’ forecasts of $1 billion. North America net sales increased 27.6% to $883.3 million. International net sales increased 23.4% to $160.5 million.

Following its earnings results announcement, Tempur Sealy declared a second-quarter cash dividend on its common stock of $0.07 per share. It also increased its share repurchase authorization to $400 million and said it expects to repurchase at least 6% of shares outstanding this year. 

Company Chair and Chief Executive Officer Scott Thompson said: “Our strategic initiatives generated record first-quarter results, which included triple-digit EPS growth year-over-year. Our strong results reflect our strong competitive position, our ongoing market share gains and a healthy industry backdrop. We achieved 27% sales growth, driven by strength across all of our brands, channels and geographies despite a constrained supply chain and pandemic-related lockdowns in key European markets. Based on this momentum and the improving retail environment, we are raising our full-year 2021 guidance.”