Global mattress manufacturer Tempur Sealy has reported a growth in second quarter sales.
According to its latest trading update ended 30 June 2022, total sales increased 3.6% to $1,211.0 million as compared to $1,169.1 million in the second quarter of 2021.
Net income was $90.6 million as compared to the second quarter 2021 record of $140.8 million.
International net sales increased 58.6% to $246.3 million as compared to $155.3 million in the second quarter of 2021. Operating margin was 14.5% as compared to 27.9% in the second quarter of 2021.
International net sales through the wholesale channel decreased $23.3 million, or 20.3%, to $91.3 million as compared to the second quarter of 2021. International net sales through the direct channel increased $114.3 million, or 280.8%, to $155.0 million as compared to the second quarter of 2021. Prior to the Dreams acquisition in August 2021, net sales to Dreams were included in the wholesale channel. Following the acquisition, net sales for Dreams are included in the direct channel.
Tempur Sealy said: “The wholesale decline was primarily driven by the acquisition of Dreams, unfavorable mix and pricing benefit to sales with no improvement to gross profit. Dreams’ margin profile is lower than our historical International margins as they sell a variety of products across a range of price points.
“International operating margin declined 1340 basis points as compared to the second quarter of 2021. The decline was primarily driven by the decline in gross margin, Asia joint venture performance due to COVID-19 related shutdowns and operating expense deleverage.”