Company Overview - Tempur Sealy International, Inc. will change its name to Somnigroup International Inc. effective February 18, 2025, following the acquisition of Mattress Firm [1][2] - The new name reflects the company's expanded vision and its position as a global holding company providing sleep solutions [2] Business Structure - Mattress Firm, Dreams, and Tempur Sealy will operate as decentralized business units under the Somnigroup name [2] - Mattress Firm and Dreams will continue as multi-branded retailers, while Tempur Sealy will focus on manufacturing and serving both third-party retailers and direct-to-consumer channels [2] Strategic Goals - The company aims to deliver long-term growth for shareholders by addressing the evolving needs of consumers through innovation and industry expertise [2] - Somnigroup will trade on the New York Stock Exchange under the ticker symbol "SGI" at the time of the name change [3] Commitment to Sustainability - The company has established a goal of achieving carbon neutrality for its global wholly owned operations by 2040, demonstrating its commitment to environmental responsibility [9]

Core Viewpoint - Tempur Sealy International, Inc. is set to finalize its acquisition of Mattress Firm Group Inc. on February 5, 2025, following a court ruling that allows the transaction to proceed without FTC intervention [1][2]. Company Update - The acquisition will create a leading vertically integrated global bedding company, expected to provide significant benefits to stakeholders [2]. - A conference call is scheduled for February 6, 2025, to discuss the acquisition details [2]. Financial Reporting - A separate conference call to discuss the Fourth Quarter and Full Year 2024 financial results is planned for February 20, 2025 [3].

Company Overview - Tempur Sealy International, Inc. (TPX) shares increased by 6% to close at $66.92, with a notable trading volume that exceeded normal levels. This follows a 13.3% gain over the past four weeks [1][2]. Acquisition Progress - Investor confidence has risen due to the approval of Tempur Sealy's $4 billion acquisition of Mattress Firm Inc. by a U.S. judge in Texas, which overturned a previous FTC decision that blocked the deal due to antitrust concerns. However, the acquisition cannot be finalized until February 7, allowing time for the FTC to appeal [2]. Earnings Expectations - Tempur Sealy is projected to report quarterly earnings of $0.57 per share, reflecting a year-over-year increase of 7.6%. Revenue is expected to reach $1.19 billion, up 1.8% from the same quarter last year [3][4]. Earnings Estimate Revisions - The consensus EPS estimate for Tempur Sealy has been revised 1.4% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation. The stock currently holds a Zacks Rank of 2 (Buy) [4]. Industry Comparison - Tempur Sealy is part of the Zacks Retail - Home Furnishings industry. Another company in this sector, Home Depot (HD), saw a 0.8% decline in its stock price, closing at $408.76, but has returned 5.9% over the past month. Home Depot's EPS estimate has also increased by 2% to $3.07, representing an 8.9% year-over-year change, and it holds a Zacks Rank of 2 (Buy) [4][5].

Investors looking for stocks in the Retail - Home Furnishings sector might want to consider either Tempur Sealy (TPX) or Home Depot (HD) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimat ...

The collaboration will develop exclusive content that aims to improve sleep routines and foster deep, restful sleep for consumers.LEXINGTON, Ky., Jan. 27, 2025 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX), the company synonymous with innovation in the mattress industry, today announced a partnership between Tempur-Pedic® and Calm, the leading app to help people sleep more, stress less and live mindfully. The collaboration will develop exclusive content that aims to improve sleep routines and ...

Core Insights - Tempur Sealy International, Inc. has launched a new Sealy Posturepedic® collection, enhancing its 75-year legacy in the mattress industry with a focus on superior support and innovation [1][2][3] Product Features - The new Sealy Posturepedic collection includes four levels: Sealy Posturepedic, Sealy Posturepedic Plus, Sealy Posturepedic Pro, and Sealy Posturepedic Elite, catering to a range of price points from entry-level to premium [1] - Each mattress features PrecisionFit™ Coils, which are patent-pending coils designed to adapt to individual body shapes, promoting natural alignment and reducing discomfort [2][3] - Additional technologies include MAXSUPPORT™ TECHNOLOGY for targeted support, DURAFLEX™ COIL EDGE to prevent sagging, and ADVANCED SEALYCHILL™ TECHNOLOGY for enhanced cooling, providing 40% more cooling than standard treatments [8] Durability and Warranty - Sealy Posturepedic mattresses undergo rigorous testing, including robotic simulations of years of use and a 500-mile shipping test, ensuring durability [4] - The company offers a 10-year warranty on every Sealy Posturepedic mattress, reinforcing its commitment to quality [4] Market Position and Strategy - Tempur Sealy aims to solidify Sealy's position as America's 1 mattress brand through continuous innovation and investment [3] - The company operates a powerful omni-channel retail strategy, selling products through third-party retailers, over 750 company-owned stores, and e-commerce channels [6] Environmental Commitment - Tempur Sealy is dedicated to environmental responsibility, with a goal of achieving carbon neutrality for its global operations by 2040 [7]

Investors interested in stocks from the Retail - Home Furnishings sector have probably already heard of Tempur Sealy (TPX) and Home Depot (HD) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven s ...

LEXINGTON, Ky., Jan. 15, 2025 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX) will release its financial results for the fourth quarter and full year ended December 31, 2024, before the NYSE opening of regular trading on Thursday, February 20, 2025. The Company will hold a conference call at 8:00 a.m. Eastern Time.The call will be webcast and can be accessed on the Company's investor relations website at investor.tempursealy.com. After the conference call, a webcast replay will remain available ...

Financial Performance - Net income for the three months ended September 30, 2024, was $129.8 million, compared to $113.9 million for the same period in 2023, representing a 14.5% increase[12]. - Comprehensive income attributable to Tempur Sealy International, Inc. for the three months ended September 30, 2024, was $167.0 million, up from $81.8 million in 2023, reflecting a significant increase of 104.9%[12]. - The net income for the nine months ended September 30, 2023, was $312.4 million, compared to $291.0 million for the same period in 2022, reflecting a year-over-year increase of approximately 10.5%[19]. - For the three months ended September 30, 2024, consolidated net sales were $1,300.0 million, an increase from $1,277.1 million in the same period of 2023, representing a growth of 1.8%[42]. - For the nine months ended September 30, 2024, consolidated net sales reached $3,723.0 million, compared to $3,754.9 million for the same period in 2023, indicating a decrease of 0.8%[44]. - Gross profit for the three months ended September 30, 2024, was $589.9 million, compared to $573.7 million for the same period in 2023, reflecting a 2.9% increase[76]. - Operating income for the nine months ended September 30, 2024, was $506.6 million, slightly down from $485.3 million in 2023, indicating a year-over-year increase of 4.3%[80]. - Net income for the third quarter of 2024 increased by 14.7% to $130.0 million compared to $113.3 million in the third quarter of 2023[102]. - Adjusted net income for Q3 2024 was $146.5 million, compared to $136.8 million in Q3 2023, reflecting an increase of 7.1%[164]. Assets and Liabilities - Total assets as of September 30, 2024, amounted to $4,568.0 million, a slight increase from $4,553.9 million at the end of 2023[14]. - Current liabilities increased to $1,011.8 million as of September 30, 2024, compared to $908.2 million at the end of 2023, indicating a rise of 11.4%[14]. - Long-term debt decreased to $2,227.1 million as of September 30, 2024, down from $2,527.0 million at the end of 2023, showing a reduction of 11.9%[14]. - Total debt was $2,287.8 million, down from $2,593.6 million as of December 31, 2023, representing a decrease of approximately 11.8%[46]. - The Company had no outstanding borrowings under the revolving credit facility as of September 30, 2024, with total availability under the revolving facility at $1,189.2 million[54]. - The Company’s accrued expenses and other current liabilities totaled $466.8 million as of September 30, 2024, compared to $427.1 million as of December 31, 2023, an increase of approximately 9.2%[60]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $537.4 million, an increase from $479.2 million in the prior year[23]. - The company had net repayments of $307.3 million on credit facilities for the nine months ended September 30, 2024, compared to $198.4 million in the same period in 2023[144]. - Cash used in investing activities decreased by $76.9 million to $(75.9) million for the nine months ended September 30, 2024, down from $(152.8) million in 2023[143]. - Capital expenditures totaled $76.4 million for the nine months ended September 30, 2024, down from $153.3 million in 2023, with expectations of approximately $125 million for the full year 2024[145]. Dividends and Share Repurchase - The company declared dividends of $0.13 per share, totaling $22.9 million for the period[16]. - The company declared dividends on common stock of $0.39 per share, totaling $68.8 million for the period[19]. - The Company had approximately $774.5 million remaining under its share repurchase authorization as of September 30, 2024, with no shares repurchased during the three and nine months ended September 30, 2024[57]. - The company temporarily suspended its share repurchase program in advance of the pending Mattress Firm acquisition, with $774.5 million remaining under the authorization as of September 30, 2024[152]. Acquisition and Market Strategy - The pending merger with Mattress Firm is expected to enhance market share and sales growth, with ongoing litigation with the U.S. Federal Trade Commission impacting the acquisition timeline[3]. - The proposed acquisition of Mattress Firm is valued at approximately $4.0 billion, expected to be funded by $2.7 billion in cash and $1.3 billion in stock consideration[38]. - The company expects the acquisition of Mattress Firm to close in late 2024 or early 2025, pending successful litigation outcomes[41]. - The company aims to successfully integrate Mattress Firm into its operations to realize synergies from the transaction, although there are risks associated with the integration process[3]. Tax and Compliance - The effective tax rates for the three months ended September 30, 2024, and 2023 were 23.9% and 24.4%, respectively, while for the nine months ended September 30, 2024, and 2023, they were 23.4% and 24.3%[65]. - The Company is evaluating the potential consequences of the OECD's proposed global minimum effective tax of 15.0% on its long-term financial position, but does not expect a material impact in 2024[66]. - The company has maintained compliance with the 2023 Credit Agreement, which requires a ratio of consolidated indebtedness less netted cash to adjusted EBITDA of less than 5.00 times[177]. Operational Highlights - North America segment net sales for the three months ended September 30, 2024, were $1,015.3 million, while the International segment reported $284.7 million, leading to consolidated net sales of $1,300.0 million[76]. - The International segment completed the rollout of a new line of Tempur® products in over 90 markets, broadening its price range and global addressable market[99]. - The company expects to outperform the bedding industry despite macroeconomic pressures, driven by successful new product launches and distribution gains in the U.S.[92]. - In 2024, the company launched a new portfolio of Tempur-Pedic® Adapt mattresses, enhancing its product offerings in the North America segment[98].

Financial Data and Key Metrics - Net sales grew 2% to $1.3 billion in Q3 2024 compared to the same period last year [8] - Adjusted EBITDA grew 6% to $275 million, with an adjusted EBITDA margin of 21.1%, the strongest margin in 10 quarters [8][11] - GAAP EPS grew 14% to $0.73 per share, while adjusted EPS grew 7% to $0.82 per share [8] - Free cash flow was $240 million, the strongest quarter since Q3 2021 [10] - Adjusted EBITDA to net debt leverage ratio declined to 2.4x, below the midpoint of the targeted range of 2-3x [9] Business Line Performance - US business performed well compared to the broader market, driven by new product launches and distribution wins [13][17] - Stearns & Foster was the strongest performing brand in the quarter, with growth in both wholesale and direct-to-consumer channels [17] - International sales grew 12% on a reported basis and 11% on a constant currency basis, with a 200 basis point expansion in operating margins [23][31] - The newly-launched International Tempur collection drove growth in key markets like the UK, Germany, China, and Australia [24] Market Performance - The US bedding industry remains significantly below historical volumes, with unit volumes down high-single-digits in 2024 [35] - International markets showed strong momentum, with double-digit growth in sales and improved operating margins [23][31] - The company expects market normalization to begin in 2025, led by the launch of the new Sealy Posturepedic product line [12][18] Strategy and Industry Competition - The company is preparing for the planned acquisition of Mattress Firm, with a Federal Court hearing scheduled for November 12, 2024 [39] - The new Sealy Posturepedic product line, launching in 2025, targets the mid to entry-level market and features proprietary coil technology [18][19] - The company continues to invest in advertising and consumer-centric innovation, with a focus on premium, health, and wellness-focused customers [12][16] Management Commentary on Operating Environment and Future Outlook - The bedding industry has been in a prolonged downturn, with volumes down approximately 30% from peak levels in 2021 [48] - The company expects a recovery or normalization in the market, driven by lower interest rates, improved housing formation, and increased consumer confidence [48] - International markets are expected to sustain strong growth, supported by new product launches and expanded distribution [23][80] Other Important Information - The company executed a $1.6 billion Term Loan B to fund the Mattress Firm acquisition [33] - Advertising spend in Q3 was $119 million, consistent with prior years, and is expected to increase in 2025 [66][69] - The company expects full-year 2024 adjusted EPS to be between $2.45 and $2.55, representing 4% growth year-over-year [34] Q&A Session Summary Question: How will consumer demand trend in late 2024 and early 2025? - The company expects market normalization in 2025, driven by lower interest rates, improved housing formation, and the launch of the new Sealy Posturepedic product line [48] Question: What is the contribution margin outlook for North America and International? - International contribution margins are expected to be higher than the US, with North America around 30-35% [52] Question: What is the state of the industry heading into 2025? - The industry is expected to recover, with product innovation and advertising driving growth, though full normalization may take time [57] Question: How will the new Sealy Posturepedic launch impact earnings in 2025? - The launch is not expected to have incremental costs, as advertising will be offset by cost reductions [78] Question: Why is international growth sustainable? - Growth is driven by new product launches, expanded distribution, and strong execution in key markets like the UK [80] Question: What drove the strong performance of Stearns & Foster in Q3? - Strong performance was due to sales focus, SKU optimization, and effective execution [83]