Amid what CEO Scott Thompson called a “recessionary environment,” bedding major Tempur Sealy International Inc. said first-quarter sales fell 1.5% to nearly $1.2 billion and net income tumbled more than 10%.
Thompson, however, said he was pleased with the first-quarter numbers and believes his company performed better than the rest of the industry.
“Although we look forward to the market’s recovery, this recessionary environment provides an opportunity to highlight the strength of our global business model and our leading competitive position,” Thompson said in a news release. “We continue to invest in our key initiatives and expect to emerge from the current downturn positioned well for long-term success.”
In the quarter that ended March 31, North American sales were down 2% to $901.1 million, while international sales were down 0.1% to $288.3 million.
Gross margin in the first quarter rose to 43.1% from 41.4% in first-quarter 2023, while operating income was down 8.2% to $131.5 million,
Net income, meanwhile, totaled $76.3 million, or 43 cents per share, down from $85.3 million, or 48 cents per share, in last year’s first quarter.
Thompson noted that first-quarter numbers were recorded “against a global backdrop, which appears to be at a historical nadir.”
“The strong reception to our newly launched innovative products and our ongoing investment in compelling marketing to support the industry, combined with our broad-based omnichannel reach and our commitment to driving operational efficiencies, drove our industry outperformance in the first quarter,” he added.
For the 2024 calendar year, the company reiterated an earlier projection of adjusted earnings per share of $2.60 to $2.90. The figure, which doesn’t include costs related to the pending acquisition of Mattress Firm and other one-time charges, represents about a 15% increase from 2023. It also assumes a sales increase in the low to mid single digits for the year.
Regarding the Mattress Firm purchase, Thompson said he believes the Federal Trade Commission will complete its review of the deal in the second quarter, which would allow the parties to close the transaction later in 2024.
