Tempur Sealy Announces First Quarter Financial Results

May 7, 2024  by HFBusiness Staff in Business Strategy, Industry   

FIRST QUARTER 2024 FINANCIAL SUMMARY

• Total net sales decreased 1.5% to $1,189.4 million as compared to $1,208.1 million in the first quarter of 2023, with a decrease of 2.0% in the North America business segment and consistent sales in the International business segment. On a constant currency basis⁽¹⁾, total net sales decreased 2.1%, with a decrease of 2.3% in the North America business segment and a decrease of 1.6% in the International business segment.
• Gross margin was 43.1% as compared to 41.4% in the first quarter of 2023. Adjusted gross margin⁽¹⁾ was 43.4% as compared to 41.8% in the first quarter of 2023.
• Operating income decreased 8.2% to $131.5 million as compared to $143.3 million in the first quarter of 2023. Adjusted operating income⁽¹⁾ decreased 2.6% to $149.4 million as compared to $153.4 million in the first quarter of 2023.
• Net income decreased 10.6% to $76.3 million as compared to $85.3 million in the first quarter of 2023. Adjusted net income⁽¹⁾ decreased 3.4% to $89.7 million as compared to $92.9 million in the first quarter of 2023.
• Earnings per diluted share ("EPS") decreased 10.4% to $0.43 as compared to $0.48 in the first quarter of 2023. Adjusted EPS⁽¹⁾ decreased 5.7% to $0.50 as compared to $0.53 in the first quarter of 2023.
• Leverage based on the ratio of consolidated indebtedness less netted cash⁽¹⁾ to adjusted EBITDA⁽¹⁾ was 2.85 times as compared to 3.24 times in the trailing twelve months ended March 31, 2023.

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.”

Thompson continued, "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."

Financial Guidance

For the full year 2024, the Company reaffirmed its expectations for an adjusted EPS⁽¹⁾ range of $2.60 to $2.90. This contemplates the Company's current sales outlook for low to mid-single digit year-over-year growth. At the midpoint, this adjusted EPS⁽¹⁾ guidance represents a 15 percent increase from the prior year.

The Company noted that its expectations are based on information available at the time of this release, and are subject to changing conditions and risks, many of which are outside the Company's control. The Company is unable to reconcile forward–looking adjusted EPS, a non–GAAP financial measure, to EPS, its most directly comparable forward–looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact EPS in 2024.

Dividend Declared

The Company's Board of Directors declared a quarterly cash dividend of $0.13 per share, payable on May 30, 2024, to shareholders of record at the close of business on May 16, 2024.

Conference Call Information

Tempur Sealy International, Inc. will host a live conference call to discuss financial results May 7. After the conference call, a webcast replay will remain available on the investor relations section of the Company's website for 30 days.

XPO (NYSE: XPO), a leading provider of LTL freight transportation in North America, today announced the opening of a major new freight transportation center in Las Vegas that will serve as a linchpin for the company’s expanded trade show shipping service. The new site, XPO’s second in Las Vegas, also enables faster service to local customers and more efficient routing of freight across the Southwest and Rockies.