Tempur Sealy International recently disclosed its financial performance for the fourth quarter and full year ending on December 31, 2023, along with financial guidance for the entire year 2024.
Key highlights from the fourth quarter of 2023 include a 1.4% decline in total net sales to $1,170.5 million compared to the same quarter in 2022. This decrease is attributed to a 4.0% drop in the North America business segment and a 7.8% increase in the International business segment. Gross margin improved to 43.8%, while operating income fell by 17.1% to $121.9 million, and net income dropped by 24.2% to $77.1 million. In terms of business segments, North America net sales declined primarily due to macroeconomic pressures affecting U.S. consumer behaviour, while International net sales saw an increase, driven by successful new product introductions.
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Looking forward, the company anticipates adjusted earnings per share (EPS) between $2.60 and $2.90 for the full year 2024, with low to mid-single digit year-over-year sales growth expected. To underscore its financial stability and growth potential, Tempur Sealy announced an 18% increase in its quarterly cash dividend to $0.13 per share. This marks the fourth dividend increase in recent years, reflecting the company's strong market position and ability to generate significant free cash flow.
Company Chairman and CEO Scott Thompson commented, 'We are pleased with our fourth quarter and full year 2023 financial performance, especially in light of the soft demand within the bedding category. We believe the Company outperformed the category. Our competitive advantages of developing and marketing differentiated products through consumer-centric innovation; world-class manufacturing capabilities; successful omni-distribution platform; and vertical integration enabled the Company to deliver solid financial results. The Company is uniquely positioned to realise significant sales growth once the bedding category returns to growth.'
Commenting on the pending acquisition of Mattress Firm, Thompson expressed optimism about Tempur Sealy's future and the integration progress with Mattress Firm. The company is expected to close the acquisition in the second half of 2024, with ongoing discussions to solidify important supplier relationships.
More information:
Tempur Sealy
investor.tempursealy.com