Q3 2024 Tempur Sealy International Inc Earnings Call Transcript
Key Points
- Tempur Sealy International Inc (TPX) reported a 2% increase in net sales to $1.3 billion and a 6% growth in adjusted EBITDA to $275 million for the third quarter of 2024.
- The company's GAAP EPS grew by 14% to $0.73 per share, and adjusted EPS increased by 7% to $0.82 per share compared to the same period last year.
- The adjusted EBITDA margin reached 21.1%, the strongest in 10 quarters, driven by consolidated growth and operating efficiency initiatives.
- International sales grew by 12% on a reported basis, with a 200 basis point expansion in international operating margins.
- The Tempur-Pedic brand was awarded the number one in customer satisfaction in both in-store retail and online mattress segments by J.D. Power's 2024 Mattress Satisfaction Report.
- The overall bedding industry remains significantly below historical volumes, with a 30% decline from peak mattress unit demand in 2021.
- North American net sales declined approximately 1% in the third quarter, with a 10 basis point decline in adjusted gross margin to 43.1%.
- The company is facing a challenging demand environment, particularly at the lower price point, impacting product mix and margins.
- The proposed acquisition of Mattress Firm is subject to ongoing litigation with the FTC, which could delay the transaction.
- The North American adjusted operating margin declined by 20 basis points to 20.1%, driven by a decline in gross margin and operating expense deleverage.
Good day, everyone, and welcome to the Tempur Sealy third quarter 2024 earnings call.
(Operator Instructions)
It is now my pleasure to turn today's conference over to Aubrey Moore with Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and thank you for participating in today's call. Joining me today are Scott Thompson, Chairman, President and Chief Executive Officer; and Bhaskar Rao, Executive Vice President, and Chief Financial Officer.
This call includes forward-looking statements that are subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve uncertainties, and actual results may differ materially due to a variety of factors that could adversely affect the company's that these factors are discussed in the company SEC filings, including its annual report on Form 10-K and quarterly report on Form 10-Q.
Any forward-looking
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