The Urethane Blog

Tempur Sealy Results

Tempur Sealy sees outperformance in North America

|About: Tempur Sealy Internationa… (TPX)|By: , SA News Editor

Tempur Sealy (NYSE:TPX) is on watch after reporting North American sales growth of 11.4% in Q2 and international sales growth of 2%.

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.