Somnigroup International Inc. has posted strong second quarter results, with net sales up 52.5% year-on-year to $1.88 billion, driven largely by its recent acquisition of Mattress Firm. The bedding giant also raised its financial guidance for the full year 2025.
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The company credited the integration of Mattress Firm, the North American launch of its new Sealy® line, and strong international performance for the uplift.
Chairman and CEO Scott Thompson stated:
'We are pleased to report another solid quarter of market outperformance, driven by the successful combination with Mattress Firm, the North American launch of our new Sealy line, and another quarter of robust sales growth for our international business. We have made significant progress on bringing Mattress Firm into Somnigroup. Teams are aligned and we are realising both cost and sales synergies ahead of our purchase assumptions.
Across both our domestic and international businesses, we have strengthened our competitive position by leveraging the Company's core strengths – our exceptional people, powerful brands, expansive distribution network, best in class operational agility and robust manufacturing capabilities. We are delivering for all of our stakeholders, employees, customers, suppliers and shareholders.'
Segment performance
Mattress Firm delivered $948.8 million in net sales, all through the direct channel, with an adjusted operating margin of 7.8%. Tempur Sealy North America saw net sales fall to $638.4 million, reflecting the elimination of intercompany sales to Mattress Firm and the loss of $57.3 million in distribution from a customer acquisition. Gross margin improved sharply to 54.5%, aided by operational efficiencies.
International sales grew 15% to $293.6 million, with gains in both wholesale and direct channels, though gross margin slipped slightly due to commodity cost inflation. Operating margin rose to 13.6% on expense leverage.
Profitability and earnings
Operating income rose 3.8% to $179.9 million, while adjusted operating income jumped 24.3% to $224.4 million. Net income declined 6.7% to $99 million, though adjusted net income edged up 1.3% to $113.1 million. EPS dropped to $0.47, with adjusted EPS at $0.53, reflecting product launch costs and distribution losses, partly offset by acquisition-related gains.
Guidance and financial position
Somnigroup now expects full-year adjusted EPS between $2.40 and $2.70, incorporating 11 months of Mattress Firm operations (net of intercompany sales) and the impact of divesting Sleep Outfitters and 73 Mattress Firm stores in May. Total debt stood at $5 billion at quarter-end, with leverage at 3.56 times adjusted EBITDA.
The Board declared a quarterly cash dividend of $0.15 per share, payable 5 September 2025 to shareholders of record on 21 August.
Somnigroup reaffirmed its confidence in delivering long-term value despite macroeconomic and trade uncertainties, noting that expectations remain subject to risks including tariffs, geopolitical tensions, and changes in consumer demand.
More information:
Somnigroup
www.somnigroup.com
