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Somnigroup Reports Strong Sales Growth Amid Acquisition

Somnigroup Reports Strong Sales Growth Amid Acquisition

Tempur Sealy International ( (SGI) ) has released its Q1 earnings. Here is a breakdown of the information Tempur Sealy International presented to its investors.

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Somnigroup International Inc., the world’s largest bedding company, specializes in designing, manufacturing, distributing, and retailing sleep solutions across more than 100 countries, with well-known brands such as Tempur-Pedic, Sealy, and Mattress Firm under its umbrella.

In its first quarter of 2025, Somnigroup reported a significant net sales growth of 34.9%, reaching $1.6 billion, largely driven by the acquisition of Mattress Firm. However, the company faced a net loss of $33.1 million, attributed to acquisition-related costs, despite an increase in adjusted net income to $97 million.

Key financial highlights include a gross margin of 36.2%, down from 39.9% the previous year, and an adjusted gross margin of 42.2%. Operating income saw a steep decline to $13.2 million due to acquisition expenses, although adjusted operating income increased to $182.8 million. The acquisition of Mattress Firm contributed $593.7 million to net sales, while Tempur Sealy International saw a 5.7% increase in net sales, driven by new product launches.

Looking ahead, Somnigroup has revised its full-year 2025 adjusted EPS expectations to a range of $2.30 to $2.65, considering the integration of Mattress Firm and divestitures. The company remains focused on leveraging its scale and operational capabilities to navigate market challenges and deliver value to shareholders.

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