US-based global mattress manufacturer Tempur Sealy has reported a decline in third quarter sales.
According to its latest trading update ended 30 September 2022, total net sales decreased 5.5% to $1,283.3 million as compared to $1,358.3 million in the third quarter of 2021. Net income decreased 25.2% to $132.7 million as compared to $177.4 million in the third quarter of 2021.
International net sales decreased 5.3% to $225.6m as compared to $238.3m in the third quarter of 2021. However, on a constant currency basis, International sales increased 7.4%.
International sales through the wholesale channel decreased $22.9m, or 21.2%, to $85.1m as compared to the third quarter of 2021. International net sales through the direct channel increased $10.2m, or 7.8%, to $140.5m.
Tempur Sealy said: “International gross margin declined 120 basis points as compared to the third quarter of 2021. The decline was primarily driven by the acquisition of Dreams driving unfavourable mix, and foreign currency exchange rates.
“Dreams’ margin profile is lower than our historical International margins as they sell a variety of products across a range of price points. International adjusted operating margin declined 740 basis points as compared to the third quarter of 2021. The decline was primarily driven by operating expense deleverage, the decline in gross margin, and Asia joint venture performance due to COVID-19 related shutdowns.”
Company Chairman and CEO Scott Thompson added: “Overall, we are pleased with both our quarterly results and the progress we have made on our long-term initiatives, against an evolving macroeconomic backdrop. We enter this complex macro period with retailers generally in good shape, a strong competitive position, and new innovative products to launch. We are watching macro developments closely and adjusting to the market conditions, while staying aggressive and on strategy.”