Somnigroup International (SGI), a leading designer and retailer of bedding products including Tempur-Pedic, Sealy, and Stearns & Foster, has reported significant revenue growth following its $1 billion acquisition of Mattress Firm in February 2025. Q1 net sales rose 34.9% to $1.60 billion, with Mattress Firm contributing $593.7 million, while Q2 revenue jumped 52.5% year-on-year to $1.88 billion. Gross margin expanded to 44%, reflecting early synergies through cross-selling and digital integration.
© Somnigroup International
The company aims to achieve $100 million in annual cost savings by 2028, with $15 million already realised in 2025. Adjusted net income rose 1.3% to $113.1 million, and SGI raised its 2025 adjusted EPS guidance to $2.40–$2.70. Despite these gains, integration costs have temporarily impacted profitability, and the company faces ongoing inflation and supply chain risks.
Recent SEC filings show an insider sold shares worth $522,478, prompting investor attention on SGI's growth and margin recovery strategy. Analysts suggest that if the synergy targets are met and operational efficiencies continue, SGI could see a positive re-rating, reinforcing its position in the competitive global bedding market.
Source: www.ainvest.com
