Tempur Sealy's stock slides 5% as weak U.S. bedding market hurts earnings and company lowers guidance

Tempur Sealy International Inc.'s stock (TPX) tumbled 7.4% early Thursday, after the mattress company's third-quarter earnings fell short of expectations and it lowered its guidance, hurt by a weak U.S. bedding market. Lexington, Ky.-based Tempur Sealy had net income of $113.3 million, or 64 cents a share, for the quarter, down from $132.7 million, or 75 cents a share, in the year-earlier period. Adjusted per-share earnings came to 77 cents, below the 81 cent FactSet consensus. Sales fell 0.5% to $1.277 billion, below the $1.309 billion FactSet consensus. "We realized robust third quarter operating cash flows and expanding gross margins while our sales and earnings were solid against a challenged operating environment," Chief Executive Scott Thompson said in a statement. "We believe the company outperformed the broader bedding market. This outperformance and double-digit growth in international sales partially mitigated a challenged U.S. bedding market, which was softer than anticipated." The company is now expecting full-year adjusted EPS of $2.30 to $2.50, down from prior guidance of $2.50 to $2.70. The stock has gained 18% in the year to date, while the S&P 500 has gained 10%.

-Ciara Linnane

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11-02-23 0746ET

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