Tempur Sealy International, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in net sales and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, the company achieved net sales of $1,300.0 million, reflecting a 1.8% increase from $1,277.1 million in Q3 2023. This growth was driven by a 12.4% increase in international sales, which reached $284.7 million, while North American sales decreased slightly by 0.8% to $1,015.3 million. Gross profit for the quarter was $589.9 million, with a gross margin of 45.4%, up from 44.9% in the same period last year. Operating income also improved, rising to $201.8 million from $183.2 million, marking a 10.2% increase.

For the nine months ended September 30, 2024, consolidated net sales totaled $3,723.0 million, a slight decline of 0.8% from $3,754.9 million in 2023. North American sales decreased by 2.2% to $2,894.8 million, while international sales increased by 4.2% to $828.2 million. Gross profit for this period was $1,656.7 million, with an improved gross margin of 44.5%, compared to 43.0% in the prior year. Operating income for the nine months rose to $506.6 million from $485.3 million, reflecting a stronger operating margin of 13.6%.

Net income attributable to Tempur Sealy for Q3 2024 was $130.0 million, up from $113.3 million in Q3 2023, while net income for the nine months increased to $312.4 million from $291.0 million. Earnings per share for Q3 2024 were $0.75, compared to $0.66 in the same quarter last year.

Strategically, the company is in the process of acquiring Mattress Firm for approximately $4.0 billion, with funding sourced from cash and stock. However, the acquisition faces regulatory scrutiny, as the FTC filed a complaint to challenge the deal. In response, Tempur Sealy has sought an injunction against the FTC's proceedings. Additionally, the company has divested 73 Mattress Firm locations and its Sleep Outfitters subsidiary to MW SO Holdings Company, LLC, while continuing to supply its products to these stores.

As of September 30, 2024, Tempur Sealy's total assets were $4,568.0 million, with total liabilities decreasing to $3,994.8 million. The company reported cash and cash equivalents of $104.2 million, up from $74.9 million at the end of 2023. The total debt also decreased to $2,287.8 million from $2,593.6 million, indicating improved financial stability.