Lexington Kentucky — Tempur Sealy International saw an 11.4% fall in sales during the first quarter of 2018 to $ 648 m due to the termination of an agreement with Steinhoff’s subsidiary, bedding retailer Mattress Firm.
In North America, in the first quarter of 2018, Tempur Sealy sold $485 m worth of products. This is a 17.1% fall in North American sales due to the Mattress Firm termination. This happened early in the second quarter of 2017. In the first quarter of 2017 sales to Mattress Firm were $94.5 m. The company added that ignoring the effects of the Mattress Firm sales, that performance was flat between the 2017 and 2018 quarters.
The international segment saw a 17% rise in sales to $163m in the quarter. In the first quarter of 2017, sales were $140 m.
Across the business, EBITDA fell by 4.3% to $83.2m m compared to $86.8 m in the first quarter of 2017.
Tempur Sealy international CEO Scott Thompson said: ‘The team has made considerable progress towards resetting the foundation of our company. We have enhanced our relationships with a diversified base of retail partners. We have expanded our store footprint and online presence.’
He added that his company had ‘maintained gross margins despite planned sales declines… and cost pressures from commodities.’