By Dean Seal
Tempur Sealy International reported lower profit on roughly flat revenue in the third quarter amid softness in the domestic bedding market.
The mattress and bedding company posted a profit of $113.3 million, or 64 cents a share, compared with $132.7 million, or 75 cents a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were 77 cents a share. Analysts surveyed by FactSet had been expecting 81 cents a share.
Sales were about flat year-on-year at $1.28 billion, below analyst forecasts for $1.31 billion, according to FactSet.
The flat revenue came from a 3.2% top-line drop in its North American business but 12.3% growth in its international segment.
“This outperformance and double-digit growth in international sales partially mitigated a challenged U.S. bedding market, which was softer than anticipated in the quarter,” Chief Executive Scott Thompson said.
Gross margin meanwhile expanded during the quarter thanks to improvements in the company’s operations and supply contracts, along with consumer-specific strategies the company took.
Write to Dean Seal at dean.seal@wsj.com
Read the full article here
