Somnigroup International Inc. announced its financial results for the first quarter ended 31 March 2025, showcasing a transformative period marked by the strategic acquisition of Mattress Firm and resilient operational performance despite global economic pressures.
The Company reported net sales of $1.6 billion, reflecting a 34.9% increase from the same quarter last year. The growth was primarily driven by $593.7 million in sales from Mattress Firm, which was acquired on 5 February 2025 and included in the results for the remainder of the quarter. Adjusted operating income rose 22.3% to $182.8 million from $149.4 million year-over-year, while adjusted net income increased 8.1% to $97.0 million. However, the Company posted a net loss of $33.1 million due to acquisition-related costs.
Chairman and CEO Scott Thompson highlighted the Company's momentum in navigating a challenging environment. 'Our results this quarter both reflect the transformational acquisition of Mattress Firm and highlight our ability to navigate a weak global market. All of our business units, domestically and internationally, successfully made progress on their growth opportunities as we leverage the core strengths of our business, including scale, operational flexibility and manufacturing capabilities,' said Thompson.
He added, 'I continue to be impressed by our people, all around the world, as they focus on execution and taking care of our customers to deliver share gains and efficient cost management across the Somnigroup enterprise. Everyone in the organisation has stepped up to quickly advance our near and longer term initiatives to continue delivering value to shareholders.'
Segment performance
Tempur Sealy North America saw net sales decline by 21.6% to $706.2 million, impacted by the accounting elimination of $130.1 million in intercompany sales to Mattress Firm and macroeconomic pressure on U.S. consumers. Adjusted gross margin improved significantly to 45.3%, driven by operational efficiencies and favourable product mix.
Tempur Sealy International delivered 5.7% net sales growth to $304.8 million, benefiting from successful product launches. International gross and operating margins improved by 130 basis points each, attributed to reduced launch costs.
Mattress Firm, now a fully consolidated segment, contributed $593.7 million in net sales during the stub period. Adjusted operating margin was 7.2%.
Corporate operating expenses increased to $85 million, reflecting acquisition-related costs, though adjusted expenses remained flat year-over-year.
Outlook and guidance
Somnigroup revised its full-year 2025 adjusted EPS guidance to a range of $2.30–$2.65, factoring in the Mattress Firm integration, the recent divestiture of Sleep Outfitters and 73 Mattress Firm stores, and macroeconomic uncertainties.
The Company ended the quarter with $5.1 billion in total debt and a leverage ratio of 3.51 times adjusted EBITDA. A quarterly dividend of $0.15 per share was declared, payable on 5 June 2025.
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Somnigroup
www.somnigroup.com