Tempur Sealy Lowers Guidance as Sales Slip on Drop in US Demand

Core Insights - Tempur Sealy reported disappointing second-quarter results, with sales impacted by macroeconomic pressures on consumers [1][2] - The company adjusted its full-year profit guidance downward, reflecting a challenging market environment [3] - CEO Scott Thompson expressed confidence in overcoming the FTC's challenge regarding the $4 billion acquisition of Mattress Firm [4] Financial Performance - Second-quarter adjusted EPS was $0.63, below analyst expectations, with sales declining 2.8% year-over-year to $1.23 billion [2] - North American sales decreased by 3.8% to $978.4 million, attributed to macroeconomic pressures affecting consumer behavior [3] - Full-year adjusted EPS guidance was revised to a range of $2.45 to $2.65, down from the previous estimate of $2.60 to $2.90 [3] Market Reaction - Following the earnings report, shares of Tempur Sealy initially fell from $48.60 to $45.58 but later rebounded to $48.83 [5] - The stock has experienced a decline of approximately 4% year-to-date in 2024 [5] Regulatory Outlook - CEO Thompson is optimistic about the company's ability to fend off the FTC's challenge to the Mattress Firm acquisition, citing a "pro-competitive rationale" [4] - The company anticipates that the litigation will conclude favorably, allowing the acquisition to close by late 2024 or early 2025 [4]