Tempur Sealy International Updates Fiscal 2024 Earnings Guidance
Company Expects Lower-than-Expected Adjusted EPS
Lexington, Kentucky - February 28, 2023
Tempur Sealy International, Inc. (NYSE: TPX), a leading global manufacturer and marketer of mattresses, pillows, and other sleep products, today announced an update to its fiscal 2024 earnings guidance, citing continued macroeconomic headwinds and a challenging retail environment.
Revised Guidance
For the full year 2024, the company now expects adjusted earnings per share (EPS) to be in the range of $2.75 to $2.95, down from its previous guidance of $3.10 to $3.30. This represents a decrease of approximately 10% at the midpoint.
Reasons for Revision
Tempur Sealy attributed the downward revision to several factors, including:
- Softer-than-expected consumer demand due to ongoing inflation and economic uncertainty.
- Increased promotional activity in the mattress industry, leading to margin pressure.
- Supply chain disruptions and higher input costs, further impacting profitability.
Outlook
Despite the challenges, Tempur Sealy remains confident in its long-term growth prospects and is implementing strategies to mitigate headwinds.
The company is focused on:
- Strengthening its e-commerce presence and expanding its product offerings.
- Investing in marketing and innovation to differentiate its brands.
- Optimizing its supply chain and reducing costs.
"While we are disappointed to adjust our guidance, we believe it is prudent to respond to the current economic environment," said Scott Thompson, Tempur Sealy's President and CEO. "We remain committed to our long-term strategy and are confident in our ability to navigate these challenges and emerge as a stronger company."
Tempur Sealy will release its full fiscal 2023 financial results on March 14, 2023.
