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From Home Furnishing Business
Tempur Sealy Announces Financial Results for the Third Quarter
November 7,
2024 by Karen Parrish in Casual Furniture, Industry
THIRD QUARTER 2024 FINANCIAL SUMMARY
- Total net sales increased 1.8% to $1,300.0 million as compared to $1,277.1 million in the third quarter of 2023, with a decrease of 0.8% in the North America business segment and an increase of 12.4% in the International business segment. On a constant currency basis(1), total net sales increased 1.7%, with a decrease of 0.4% in the North America business segment and an increase of 10.5% in the International business segment.
- Gross margin was 45.4% as compared to 44.9% in the third quarter of 2023. Adjusted gross margin(1) was 46.2% as compared to 45.9% in the third quarter of 2023.
- Operating income increased 10.2% to $201.8 million as compared to $183.2 million in the third quarter of 2023. Adjusted operating income(1) increased 4.2% to $223.7 million as compared to $214.7 million in the third quarter of 2023.
- Net income increased 14.7% to $130.0 million as compared to $113.3 million in the third quarter of 2023. Adjusted net income(1) increased 7.1% to $146.5 million as compared to $136.8 million in the third quarter of 2023.
- Earnings per diluted share ("EPS") increased 14.1% to $0.73 as compared to $0.64 in the third quarter of 2023. Adjusted EPS(1) increased 6.5% to $0.82 as compared to $0.77 in the third quarter of 2023.
- Leverage based on the ratio of consolidated indebtedness less netted cash(1) to adjusted EBITDA(1) was 2.41 times for the trailing twelve months ended September 30, 2024, compared to 2.89 times for the trailing twelve months ended September 30, 2023.
Company Chairman and CEO Scott Thompson commented, "We are pleased with our performance in the third quarter. Our global market outperformance, led by double-digit growth in our international segment, resulted in consolidated sales growth year-over-year despite the global bedding industry continuing to perform significantly below historical trends. Sales growth coupled with our operational efficiency initiatives and diverse business platform resulted in solid growth in both adjusted EBITDA and adjusted EPS. We continue to see our investments in product, people, and advertising as foundational to our long-term success."
Financial Guidance
For the full year 2024, the Company narrowed its expectations for an adjusted EPS(1) range of $2.45 to $2.55, which represents a 4% increase in adjusted EPS(1) from the prior year at the midpoint. This contemplates the Company's current outlook that 2024 sales will be slightly below 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 December 5, 2024, to shareholders of record at the close of business on November 21, 2024.
Conference Call Information
Tempur Sealy International, Inc. will host a live conference call to discuss financial results on November 7, 2024, at 8:00 a.m. ET. The call will be webcast and can be accessed on the Company's investor relations website at investor.tempursealy.com. After the conference call, a webcast replay will remain available on the investor relations section of the Company's website for 30 days.