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From Home Furnishing Business
Tempur Sealy Announces Financial Results for Third Quarter
November 2,
2023 by HFBusiness Staff in Business Strategy, Industry 
THIRD QUARTER 2023 FINANCIAL SUMMARY
Total net sales decreased 0.5% to $1,277.1 million as compared to $1,283.3 million in the third quarter of 2022, with a decrease of 3.2% in the North America business segment and increase of 12.3% in the International business segment. On a constant currency basis(1), total net sales decreased 1.7%, with a decrease of 3.5% in the North America business segment and an increase of 6.7% in the International business segment.
Gross margin was 44.9% as compared to 42.2% in the third quarter of 2022. Adjusted gross margin(1) was 45.9% as compared to 42.5% in the third quarter of 2022.
Operating income decreased 8.9% to $183.2 million as compared to $201.0 million in the third quarter of 2022. Adjusted operating income(1) increased 3.9% to $214.7 million as compared to $206.7 million in the third quarter of 2022.
Net income decreased 14.6% to $113.3 million as compared to $132.7 million in the third quarter of 2022. Adjusted net income(1) decreased 0.7% to $136.8 million as compared to $137.8 million in the third quarter of 2022.
Earnings per diluted share ("EPS") decreased 14.7% to $0.64 as compared to $0.75 in the third quarter of 2022. Adjusted EPS(1) decreased 1.3% to $0.77 as compared to $0.78 in the third quarter of 2022.
Company Chairman and CEO Scott Thompson commented, "We realized robust third quarter operating cash flows and expanding gross margins while our sales and earnings were solid against a challenged operating environment.”
“We believe the Company outperformed the broader bedding market. This outperformance and double-digit growth in international sales partially mitigated a challenged U.S. bedding market, which was softer than anticipated in the quarter.”
"Similar to the second quarter, we demonstrated the strength of our business model and its ability to produce reasonable returns, even in a less robust market. Improvements in operations and supply contracts, combined with the impact of consumer-specific strategies drove significant gross margin expansion, positioning the Company well for the future.”
"Regarding the pending Mattress Firm transaction, we continue to expect to formally respond to the Federal Trade Commission's second request in the fourth quarter and to close the transaction in mid to late 2024. I am pleased to share that Tempur Sealy and Mattress Firm continue to make joint progress in synergies planning.”
“In addition, Tempur Sealy has signed post-closing supply agreements with numerous companies providing Mattress Firm with access to certain consumer-desired products, solidifying important supplier relationships ahead of the expected close. Additional discussions regarding supplier relationships are ongoing."