Global mattress manufacturer Tempur Sealy International, Inc. has reported a decline in first quarter sales although a strong reception to new products helped deliver a solid period.
According to its latest trading update for the first quarter ended 31 March 2024, total sales decreased 1.5% to $1.18bn as compared to $1.2bn in the first quarter of 2023.
North America net sales decreased 2% to $901.1m as compared to $919.6m in the first quarter of 2023. International net sales decreased 0.1% to $288.3m as compared to $288.5m.
Gross margin was 43.1% as compared to 41.4%, while net income decreased 10.6% to $76.3m as compared to $85.3m.
Company Chairman and CEO Scott Thompson commented: “We are pleased to report solid first quarter sales, earnings and record operating cash flow 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 omni-channel reach and our commitment to driving operational efficiencies, drove our industry outperformance in the first quarter.
“Although we look forward to the market’s recovery, this recessionary environment provides opportunity to highlight the strength of our global business model and our leading competitive position. We continue to invest in our key initiatives and expect to emerge from the current downturn positioned well for long term success.
“Regarding the pending Mattress Firm transaction, which we have been working on for two and half years, we believe it will unlock benefits for customers and shareholders. We continue to work closely with the FTC to advance the transaction approval process.
“As previously disclosed, we anticipate the FTC will complete its review in the second quarter and we are targeting closing the transaction in 2024. We look forward to bringing the Mattress Firm team onboard.”
