Driven by the addition of its newly acquired Mattress Firm retail business, Somnigroup International said second-quarter sales jumped 52.5% to $1.88 billion.
The top line included $948.8 million of Mattress Firm sales – a figure offset by the accounting elimination of $263.5 million in wholesale sales from its Tempur Sealy manufacturing segment to Mattress Firm.
Net income, however, fell 6.7% to $99 million, or 47 cents per share, due largely to increased selling, marketing and interest expenses. In last year’s second quarter, net income was $106.1 million, or 60 cents per share.
Gross margin for the most recent quarter was 59.8%, up sharply from 41.9% in the same quarter last year.
“We are pleased to report another solid quarter of market outperformance, driven by the successful combination with Mattress Firm, the North American launch of our new Sealy line, and another quarter of robust sales growth for our international business,” said Scott Thompson, chairman and CEO. “We have made significant progress on bringing Mattress Firm into Somnigroup. Teams are aligned and we are realizing both cost and sales synergies ahead of our purchase assumptions.”
Because sales to Mattress Firm no longer are included, sales from Tempur Sealy North America totaled $638.4 million, down from $978.4 million in last year’s second quarter. The most recent sales figure also was impacted by the recent divestiture of its Sleep Outfitters retail chain and 73 Mattress Firm stores.
Net sales for Tempur Sealy International jumped 15% to $293.6 million, a figure Thompson said was driven by successful new product launches.
“Across both our domestic and international businesses, we have strengthened our competitive position by leveraging the company’s core strengths – our exceptional people, powerful brands, expansive distribution network, best in class operational agility and robust manufacturing capabilities,” he said. “We are delivering for all of our stakeholders, employees, customers, suppliers and shareholders.”
Somnigroup didn’t provide a sales estimate for 2025 but did boost its estimate for adjusted earnings per share, a figure that doesn’t include a variety of one-time charges. The new projection is $2.40 to $2.70 per share — up from a May projection of $2.30 to $2.65 per share.
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