Adjusted earnings per share
Tempur Sealy International Inc. reported net earnings of $140.8 million in the second quarter of fiscal 2021, which ended June 30. It was a 512% increase, compared with the second quarter of fiscal 2020. Reported adjusted earnings per share were $0.79 for the quarter, beating Wall Street analysts’ consensus estimates of $0.60 by $0.19 (MarketWatch).
Net sales increased 75.8% to $1.17 billion, compared with $665.2 million in the second quarter of fiscal 2020.
The Lexington, Kentucky-based manufacturer and retailer raised its financial guidance for the full year to reflect improved business trends and its acquisition of U.K. retailer Dreams, which closed in early August. It currently expects net sales growth to exceed 35%, compared with 2020, and full-year adjusted EPS of $3.10 to $3.25. It also declared a quarterly cash dividend of 9 cents per share, a 29% increase over the previous quarterly dividend of 7 cents per share.
“Our strong performance in the quarter was broad-based across geographies and channels,” said Scott Thompson, Tempur Sealy chair and chief executive officer. “Our investments and strategies to strengthen the long-term growth potential of Tempur Sealy continue to enhance our competitive position. This quarter, we were pleased to report global sales growth of 62% compared with 2019, a base year unaffected by Covid-19. We were especially pleased with our double-digit global web sales growth this quarter versus second quarter 2020, which grew over 125% versus the prior year when traditional retail stores were impacted by Covid.
“Our performance is linked to our company initiatives, with new distribution driving approximately 50% of our expected two-year sales growth. Another approximately 35% of our expected growth is from strategic mergers and acquisitions as well as sales from previously untapped markets, including the direct to consumer and OEM markets. This leaves only 15% of our two-year growth coming from the underlying strength of the market. This broader foundation, combined with significant cash flow, gives us confidence in our ability to deliver double-digit earnings growth in 2022 and beyond.”