Tempur Sealy shares fall on revenue miss, lowered guidance as mattress maker cites ‘macroeconomic pressures’

Shares of Tempur Sealy International Inc. fell 4.8% to $23.02 before market open after the mattress maker reported second-quarter sales below Wall Street’s expectations and lowered its full-year earnings guidance. The mattress maker reported sales of $1.211 billion, up from $1,169.1 billion in the same period last year, but below the FactSet consensus of $1.264 billion. “During the quarter, the overall North America operating environment deteriorated, driven by various macroeconomic pressures,” said Tempur Sealy CEO Scott Thompson, in a statement. “We believe the overall U.S. mattress business, our largest market, had its toughest volume decline in 15 years, with industry units down 20 percent to 25 percent compared to last year’s record second quarter volumes.” The company has adjusted its hiring expectations and near-term capacity investments, and also implemented a price increase in the U.S. in late June to neutralize the dollar impact of commodity inflation, he added. The company posted net income of $90.6 million, or 51 cents a share, compared to net income of $140.8 million, or 69 cents a share, in the year-ago quarter. Adjusted per-share earnings came to 58 cents, down from 79 cents in the same period last year. FactSet consensus was 58 cents a share. Tempur Sealy revised its full year adjusted EPS guidance to $2.60 to $2.80 from its prior estimate of $3.20 to $3.40. The company also announced a third-quarter cash dividend of 10 cents a share.

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