Tempur Sealy Lowers Guidance as Sales Slip on Drop in US Demand

Mattress shaper Tempur Sealy International (TPX) connected Tuesday reported worse-than-expected results and trim its outlook arsenic ostentation led to falling request successful nan U.S. 

The institution posted second-quarter adjusted earnings per stock (EPS) of $0.63, pinch income declining 2.8% year-over-year to $1.23 billion. Both were awkward of statement forecasts of analysts polled by Visible Alpha.

North American income slid 3.8% to $978.4 million, which Tempur Sealy said was chiefly nan consequence of "continued macroeconomic pressures impacting U.S. user behavior." Chief Executive Officer (CEO) Scott Thompson explained that nan institution faced "softer than anticipated manufacture volumes."

Tempur Sealy now sees full-year adjusted EPS successful a scope of $2.45 to $2.65, down from its erstwhile estimate of $2.60 to $2.90.

CEO Thinks It Will Fend Off FTC Challenge To Mattress Firm Acquisition

Thompson said that Tempur Sealy anticipates it will beryllium successful successful fending disconnected a situation from nan Federal Trade Commission (FTC) to artifact its $4 cardinal acquisition of Mattress Firm. He indicated nan institution is assured of nan "pro-competitive rationale" of nan acquisition, and believes it will triumph nan litigation successful nan adjacent fewer months, allowing nan acquisition to adjacent precocious this twelvemonth aliases early 2025. The FTC argues that nan merger would stifle title and raise mattress prices for consumers.

Shares of Tempur Sealy, which closed Monday astatine $48.60, fell to $45.58 soon aft markets opened Tuesday but rebounded and edged up to $48.83 arsenic of 10:50 a.m. ET. They person mislaid astir 4% truthful acold successful 2024.