Global mattress manufacturer Tempur Sealy International, Inc. has reported a growth in second quarter sales with both major sectors delivering strong results.
According to its Q2 trading update ended 30 June 2023, total group sales rose 4.8% to $1.26bn from $1.21bn.
North America net sales increased 5.4% to $1bn, primarily driven by the success of new product launches for Tempur and Stearns & Foster, while International net sales increased 2.7% to $252.9m.
Gross margin was 42.7% as compared to 41.0% in the second quarter of 2022. Net income increased 2% to $92.4m from $90.6m during the period.
Company Chairman and CEO Scott Thompson commented: “Our continued market outperformance in the second quarter reflects the momentum we are driving through our execution of our long term initiatives. All three of our leading U.S. brands – Tempur, Sealy and Stearns & Foster – performed well in the quarter, significantly ahead of where we believe the U.S. industry trended. We were also pleased with the second quarter performance of our International business.
“The successful Tempur international launch, combined with Dreams’ crisp retail execution, is driving continued share gains worldwide and positioning us well for the future. This quarter’s results were delivered in markets that were a bit less robust than we expected. Our global industry outperformance partially mitigated the negative impact of these headwinds. While we look forward to a recovering market, this challenged environment has allowed us to demonstrate the strength of our global business model as we realized solid earnings and strong operating cash flows.
“Regarding the pending Mattress Firm acquisition, we are currently responding to the Federal Trade Commission’s second request. Mattress Firm’s recent quarterly results, which it reported yesterday, were consistent with our expectations. We continue to expect to close the transaction in 2024 and look forward to bringing the Mattress Firm team onboard.”