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From Home Furnishing Business
Tempur Sealy Announces Fourth Quarter and Year End Financial Results
February 9,
2023 by HFBusiness Staff in Business Strategy, Industry 
Tempur Sealy International, Inc. announced financial results for the fourth quarter and year ended December 31, 2022. The Company also issued financial guidance for the full year 2023.
FOURTH QUARTER 2022 KEY HIGHLIGHTS
Total net sales decreased 12.7% to $1,187.4 million as compared to $1,359.6 million in the fourth quarter of 2021, with a decrease of 12.2% in the North America business segment and a decrease of 14.3% in the International business segment.
Gross margin was 41.2% as compared to 44.5% in the fourth quarter of 2021. Adjusted gross margin(1) was 41.6% in the fourth quarter of 2022. There were no adjustments to gross margin in the fourth quarter of 2021.
Operating income decreased 41.3% to $147.1 million as compared to $250.8 million in the fourth quarter of 2021. Adjusted operating income(1) was $156.8 million in the fourth quarter of 2022. There were no adjustments to operating income in the fourth quarter of 2021.
Net income decreased 42.2% to $101.7 million as compared to $175.8 million in the fourth quarter of 2021. Adjusted net income(1) decreased 45.3% to $96.2 million as compared to $175.9 million in the fourth quarter of 2021.
Earnings per diluted share ("EPS") decreased to $0.57 as compared to $0.88 in the fourth quarter of 2021. Adjusted EPS(1) decreased 38.6% to $0.54 as compared to $0.88 in the fourth quarter of 2021.
Company Chairman and CEO Scott Thompson commented, "Our fourth quarter and full year results are the second best sales and adjusted net income results for like periods in the Company's history.”
Thompson continued, “Although the robust market we experienced in 2021 represented a challenging comparison for 2022, we outperformed the global bedding market, expanding our leading position in the global industry. We continued to invest in industry-leading product innovation and advertising spend, expand our manufacturing capacity, drive omni-channel expansion worldwide, and execute on our balanced capital allocation strategy.”
“As we enter 2023, we expect success across our brand, product, and omnichannel initiatives to deliver growth on both the top and bottom line as the industry experiences a stable but subdued demand environment," he concluded.
For the full year 2023, the Company currently expects adjusted EPS(1) between $2.60 to $2.80. This contemplates the Company's current sales outlook for mid-single digit year-over-year growth.
Scott Thompson commented, "We are pleased to issue 2023 guidance that targets growth on both the top and bottom line. This contemplates Tempur Sealy's continued outperformance across the bedding industry worldwide driven by our key product, brand, and omni-channel initiatives. Our strong competitive position continues to provide us growth opportunities."