Lexington, Kentucky – Tempur Sealy's first quarter sales were up 18.8% to $1.2bn, but adjusted EBITDA across the business lagged, rising just 1.9% to $234.5m.
Pricing, logistics take shine of Tempur earnings in Q1
CEO Scott Thompson said that the earnings numbers were caused by headwinds from macroeconomic matters such as recent geopolitical events, falling consumer confidence and new coronavirus variant outbreaks.
The company managed to grow market share in the first quarter. '[We plan] various initiatives this year, including expanding our manufacturing capabilities, growing our direct to consumer channel both online and in-store, and transitioning to an enhanced ERP system,' he said.
Margins in the company's international business fell because of Dreams, the UK furniture retailer. Unlike other Tempur routes to market, this sells bedding from a range of manufacturers. However, the purchase helped sales in the international business, which were up 92% to $308m in the quarter.
In the larger North America division, price competition also hit earnings, which fell slightly. This was also the result of a more inefficient supply chain in the quarter.
The company has updated its financial guidance for 2022. It expects sales to grow at least 10% through higher prices and its purchase of Dreams.