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.

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.