Somnigroup Q1 Gross sales Improve Following Mattress Agency Acquisition » BedTimes Journal
Pushed by the addition of gross sales from newly acquired Mattress Agency, Somnigroup Worldwide mentioned first-quarter gross sales jumped 34.9% to $1.6 billion.
The highest line included $593.7 million in Mattress Agency gross sales between Feb. 5, when the acquisition closed, and the top of the quarter on March 31. However the determine was offset by some $130.1 million in gross sales from its mattress manufacturing arm, Tempur Sealy North America, to Mattress Agency throughout the identical interval.
Somnigroup mentioned prices associated to the Mattress Agency acquisition had been largely answerable for the online lack of $33.1 million, or 17 cents per share, within the quarter. In final yr’s first quarter, the corporate recorded web revenue of $76.3 million, or 43 cents per share.
“Our outcomes this quarter each mirror the transformational acquisition of Mattress Agency and spotlight our capability to navigate a weak international market,” mentioned Scott Thompson, chairman and CEO. “All of our enterprise items, domestically and internationally, efficiently made progress on their development alternatives as we leverage the core strengths of our enterprise, together with scale, operational flexibility and manufacturing capabilities.”
The corporate mentioned Tempur Sealy North America’s wholesale gross sales totaled $706.2 million, down from $901.1 million in final yr’s first quarter. A large portion of the decline was because of the elimination of $130.1 million in gross sales to Mattress Agency, however the firm attributed 8% of the drop to “continued macroeconomic pressures impacting U.S. client habits.”
The enterprise phase’s gross margin fell to 34% from 37.4% in final yr’s first quarter.
Somnigroup mentioned Tempur Sealy Worldwide gross sales elevated 5.7% to $304.8 million. Worldwide gross margin improved to 49% from 47.7% within the opening quarter of 2024.
The corporate additionally trimmed its projection for adjusted earnings per share to $2.30 to $2.65 for the 2025 calendar yr. That was down from a February projection of $2.60 to $3 per share. Adjusted earnings per share don’t embrace prices from the Mattress Agency acquisition and sure different one-time bills.
The corporate didn’t launch a 2025 gross sales projection or different monetary estimates because of the “uncertainty of the macroeconomic atmosphere.” A lot of the uncertainty is pushed by “the attainable imposition of latest tariffs or retaliatory tariffs, will increase in current tariffs and different adjustments in commerce coverage and rules,” the corporate mentioned.
Learn extra quarterly stories at BedTimesMagazine.com.
