Tempur Sealy third-quarter revenue drops 25% due to macro pressures

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LEXINGTON, Ky. — Tempur Sealy International’s third-quarter net income fell 25.2% to $132.7 million, from $177.4 million in same period last year.

The bedding maker said quarterly sales fell 5.5% to $1.3 billion from net sales of $1.4 billion in the same quarter last year. North American sales fell 5.4% to $1 billion, and the company’s international sales fell 5.3% to $225.6 million.

Earnings before interest, taxes, depreciation and amortization decreased 16.9% to $245.4 million from $295.2 million in the third quarter of 2021. Adjusted EBITDA decreased 15.4% to settle at $251.9 million, compared to $297.6 million in the third quarter of 2021.

“Our third quarter results demonstrate the continued strength of our industry-leading business model and products as they mitigated adverse currency dynamics and the overall challenging operating environment during the quarter,” said Scott Thompson, President and CEO. “We performed well in line with our expectations while working through these headwinds.

“Over the past two quarters, we have extended the timelines of certain capital projects and reduced margins, thereby reducing hiring and planned spending,” he continued. “Going forward, we will keep the current operating environment in mind as we leverage our competitive advantages to outperform the global bedding market and position ourselves well for eventual market normalization.”

The company also updated its full-year 2022 earnings guidance and currently expects adjusted earnings per share to range from $2.50 to $2.60.

“Overall, we are pleased with both our quarterly results and the progress we have made on our long-term initiatives, in an evolving macroeconomic environment,” Thompson said. “We are entering this complex macro period with retailers generally in good shape, a strong competitive position and innovative new products to launch. We closely monitor macroeconomic developments and adapt to market conditions, while remaining aggressive and strategic.

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