Net sales increased by 6.3% year-over-year to $1.32 billion, driven by robust demand across all product categories.
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Earnings per share rose by 12.5% to $2.90, outperforming the consensus estimate of $2.62.
Business Highlights:
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The company's core Tempur-Pedic brand continued to perform well, with sales increasing by 8.9% in the quarter.
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Sealy and Stearns & Foster also experienced growth, with sales rising by 4.2% and 3.5%, respectively.
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International sales accounted for 28% of total revenue, driven by strong demand in Europe and Asia.
Financial Performance:
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Gross profit margin improved by 100 basis points to 49.1%, reflecting cost optimization initiatives.
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Operating expenses increased slightly, but were offset by higher sales.
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Net income reached $223.7 million, up from $198.9 million in the prior-year quarter.
Outlook:
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Tempur Sealy remains optimistic about the future, citing strong consumer demand and continued focus on innovation.
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The company expects to deliver double-digit earnings growth in 2023.
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Tempur Sealy is investing heavily in marketing and product development to maintain its leadership position in the mattress industry.
Analyst Commentary:
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"Tempur Sealy's Q3 results demonstrate the company's resilience and adaptability in a challenging economic environment," said Mark Smith, an analyst at Oppenheimer.
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"We believe the company is well-positioned to continue its growth trajectory in the coming years," added Robert Wetenhall, an analyst at Jefferies.
