by LEXINGTON, Ky. — Bedding manufacturer Tempur Sealy International reported a drop in net sales and net income for the fourth quarter ended Dec. 31, 2022.
Net sales for the quarter totaled $1.2 billion, down 12.7% from the $1.4 billion reported the same period last year. Net income totaled $101.7 million, or 57 cents per share, down 42.2% from the $175.8 million, or 88 cents per share reported last year.
For the full year, the company reported total sales of $4.92 billion, down .2% from the $4.93 billion reported in 2021. Net income fell 27%, to $455.7 million, or $2.53 per share, compared to $624.5 million, or $3.06 per share in 2021.
Other highlights of the report were as follows:
+ North America net sales decreased 12.2% to $932.3 million, compared to $1.06 billion during the fourth quarter of 2021. The company said this was primarily due to macroeconomic pressures impacting U.S. consumer behavior.
+ North America net sales through the wholesale channel decreased 13.2% to $812.9 million, compared to the fourth quarter of 2021. North America sales through the direct channel decreased 4.9% to $119.4 million, compared to the same period in 2021.
+ International net sales decreased 14.3% to $255.1 million, compared to $297.5 million in the same period in 2021. The company said the decline was due to unfavorable currency exchange rates.
+ International net sales through the wholesale channel decreased 16.6% to $93.2 million and international net sales through the direct channel fell 12.8% to $161.9 million.
+ Corporate operating expenses increased to $40.8 million compared to $38.2 million during the fourth quarter of 2021. The adjusted operating expense was $36.8 million in the fourth quarter. There were no adjustments to operating expenses during the same period of 2021.
+ The company ended the quarter with total debt and consolidated indebtedness less netted cash of $2.8 billion.
Company Chairman and CEO Scott Thompson described the fourth quarter and full-year results as the second best sales and adjusted net income results for similar periods in the company’s history.
“Although the robust market we experienced in 2021 represented a challenging comparison for 2022, we outperformed the global bedding market, expanding our leading position in the global industry,” he said. “We continued to invest in industry-leading product innovation and advertising spend, expand our manufacturing capacity, drive omnichannel expansion worldwide, and execute on our balanced capital allocation strategy. As we enter 2023, we expect success across our brand, product and omnichannel initiatives to deliver growth on both the top and bottom line as the industry experiences a stable but subdued demand environment.”
