US firm Tempur Sealy posts net sales of $1.23 bn in Q2 FY24

Operating income saw a notable increase of 9.1 per cent, reaching $173.3 million compared to $158.8 million in the previous year. Adjusted operating income also rose by 5.1 per cent to $180.6 million, up from $171.8 million in Q2 FY23. Net income increased significantly by 14.8 per cent, totalling $106.1 million, compared to $92.4 million in the same quarter last year. Adjusted net income rose by 9.5 per cent to $111.7 million, up from $102 million in Q2 FY23.

Earnings per diluted share (EPS) saw a strong increase of 15.4 per cent, reaching $0.60, compared to $0.52 in the same quarter of the previous year. Adjusted EPS also improved by 8.6 per cent to $0.63, up from $0.58 in Q2 FY23, the company said in a press release.

In North America, net sales decreased by 3.8 per cent to $978.4 million, down from $1.017 billion in Q2 FY23. Sales through the wholesale channel dropped by $41.2 million, or 4.6 per cent, to $854.8 million, while sales through the direct channel increased by $2.8 million, or 2.3 per cent, to $123.6 million. The North American gross margin improved to 41.9 per cent, up from 39.7 per cent in the same period last year, with a 200-basis-point improvement compared to the adjusted gross margin in Q2 FY23.

Internationally, net sales grew slightly by 0.9 per cent, reaching $255.2 million, up from $252.9 million in the same quarter last year. On a constant currency basis, international net sales increased by 1.9 per cent. The wholesale channel saw a modest increase of $2.5 million, or 2.7 per cent, bringing the total to $95.7 million, while sales through the direct channel decreased marginally by $0.2 million, or 0.1 per cent, to $159.5 million. The international gross margin improved by 170 basis points, reaching 56.6 per cent, compared to 54.9 per cent in Q2 FY23.

"We are pleased to see our global market outperformance mitigate the impact of softer than anticipated industry volumes. Despite an estimated mid-single digit industry decline over the quarter, more than our anticipated low-single digit decline for the period, our sales were only slightly below internal expectations. Our strong gross margin performance and solid cost controls resulted in healthy earnings growth in the second quarter,” said Scott Thompson, company chairman and CEO.

Fibre2Fashion News Desk (DP)