Tempur Sealy Results
Tempur Sealy sees outperformance in North America
The company’s gross margin rate improved 230 bps to 40.8% of sales during the quarter.
CEO update: “The combination of our powerful omni-channel distribution platform and our innovative products delivered double-digit revenue and earnings growth. Our North America operations had a stand-out quarter driven by our new Breeze line of mattresses and 78% growth in our direct to consumer channel. These results, combined with our future expected earnings growth outlook, support a return to our share repurchase program. We expect our leverage ratio to move to the lower end of our targeted range of 3 to 4 times debt to adjusted EBITDA in the near-term, while at the same time, subject to market conditions, we are targeting quarterly share repurchases of approximately $50 million.”
Looking ahead, Tempur Sealy expects full-year EBITA of $450M to $480M vs. $435M to $475M prior and $470M consensus estimate.