Lexington Kentucky — Tempur Sealy International saw a 2.5% rise in sales during the third quarter of 2018 to $ 729.5 m following a restatement of year earlier numbers.
Tempur Sealy sales up, operating income down in Q3
However, operating income fell by 12.9% between the quarters. In 2018, the company recorded operating income of $84.7 m in the third quarter; in the 2017 quarter the it recorded $ 97.3 m.
Sales in the North America rose to $596.8 m in Q3 2018. This is 3% up on the $580.6 m in the 2017 quarter. Much of this growth came through larger retail stores. The company struggled with a poor product mix which depressed and higher raw materials costs in the market.
International sales rose by 2.1% in Q3 2018, reaching $133.7 m up 4.9% on a constant currency basis. This part of the business benefited from a greater proportion of direct-to-customer sales. Additionally, operational improvements and a new way of accounting for royalty income helped numbers in the division.
Scott Thompson is ceo of Tempur Sealy. He said: 'Our recent Tempur-Pedic and Sealy Hybrid product introductions have been the best-received in the company's history. Sales of Tempur-Pedic mattresses have accelerated in the quarter, with 29% growth in North America. We are rolling out our LuxeAdapt product and our Breeze products will hit the shelves in early 2019.'