Somnigroup reports flat sales as it targets growth after Mattress Firm acquisition

Kentucky, US – Somnigroup, the mattress maker and retailer formerly known as Tempur Sealy, has reported flat sales in 2024, with the $4.931bn achieved in the year representing a 0.1% increase from 2023’s $4.925bn. Net income was up 4.4%, from $368m in 2023 to $384m in 2024. On an adjusted basis, the increase was 6.9%, up from $426m to $455m.

In the fourth quarter, sales were up 3.2% to $1.21bn, from 2023’s $1.17bn. Looking regionally, there was a decrease of 0.1% in North America, but sales in its international business were up 14%. North American wholesale sales were up 0.3% to $765m in the quarter, while they were down 2.7% to $129m in its direct channel. Internationally, wholesale sales were up 10.8% to $118m, and direct sales up 16.2% to $195m.

“We are pleased to report another strong quarter with market leading sales,” said Scott Thompson, the company’s chairman and CEO. “Our 2024 results are reflective of the strong fundamentals of our business model as we delivered record sales and gross margins while the industry is experiencing trough volumes.”

The company finally completed its delayed takeover of US retail chain Mattress Firm in early February, which Thompson said was a significant milestone. “With the acquisition of Mattress Firm we are now clearly the world’s largest bedding company, with superior capabilities in design, manufacturing, distribution and retail, and a portfolio of the most highly recognised brands in the industry,” he said.

“Looking beyond this year, we are planning for markets to return to growth, while simultaneously realising incremental benefits from the Mattress Firm transaction and continued industry leading execution. We are internally targeting sales to grow at a compound annual rate of mid-single digits starting in 2026.”
 

To see all the latest financial results, please visit
https://www.utech-polyurethane.com/topic/financial