Tempur Sealy International, a leading mattress and bedding company, has announced its financial results for the third quarter. While revenue remained relatively unchanged, the company reported a decrease in profit due to challenges in the domestic bedding market.
Profit and Earnings
Tempur Sealy International recorded a profit of $113.3 million, equivalent to 64 cents per share, compared to $132.7 million, or 75 cents per share, in the same quarter last year. After adjusting for one-time items, the adjusted earnings were 77 cents per share. Despite this, it fell short of analysts’ expectations who were anticipating 81 cents per share.
Sales for the quarter were approximately flat compared to the previous year, coming in at $1.28 billion. However, this figure was slightly below the forecasted $1.31 billion. The company experienced a 3.2% decline in its North American business, but saw a significant 12.3% growth in its international segment.
Scott Thompson, the Chief Executive of Tempur Sealy International, acknowledged that the company faced difficulties in the U.S. bedding market during the quarter. However, he highlighted that the strong performance and double-digit growth in international sales helped partially offset these challenges.
Gross Margin Expansion
Despite the market challenges, Tempur Sealy International managed to expand its gross margin during the quarter. This was attributed to improvements in the company’s operations and supply contracts, as well as implementing consumer-specific strategies.