Tempur Sealy net sales up 29% in 4Q

Time：2020-03-02 12:30:50    Share：

Tempur Sealy International said fourth quarter net sales increased 29%, and direct-to-consumer channel net sales increased 62%.

For the full year, net income increased 89%, the company said.

“The investments we have made over the past four years strengthening the long-term foundation of our company investments have enhanced our competitive position,” said Chairman and CEO Scott Thompson. “We exited 2019 with all-time record fourth quarter sales, adjusted EBITDA and free cash flow. The combination of our powerful omnichannel distribution platform coupled with our market leading brands and products continues to drive market share gains and solid financial performance. We are carrying our momentum from 2019 forward, and we expect record full-year revenues and over 20% growth in adjusted EBITDA in 2020.”

Total net sales increased 28.9% to $871.3 million. On a constant currency basis, total net sales increased 29.2%, with an increase of 36.3% in the North America business segment and an increase of 4% in the international business segment, the company said.

The gross margin was 44.3% as compared with 41.9% in the fourth quarter of 2018. The adjusted gross margin was 42.4% in the fourth quarter of 2018. There were no adjustments to gross margin in the fourth quarter of 2019, the company said.

Operating income increased 46.1% to $84.6 million as compared with $57.9 million in the fourth quarter of 2018. Operating income in the fourth quarter of 2019 included $29.8 million of charges associated with a wholesale customer bankruptcy. Adjusted operating income increased 36.6% to $124 million as compared with $90.8 million in the fourth quarter of 2018.

Net income increased 275.6% to $46.2 million as compared with $12.3 million in the fourth quarter of 2018. Adjusted net income increased 51.7% to $75.4 million as compared with $49.7 million in the fourth quarter of 2018.

Earnings before interest, tax, depreciation and amortization increased 44.3% to $112.4 million as compared with $77.9 million in the fourth quarter of 2018. Adjusted EBITDA increased 29.3% to $152.4 million as compared with $117.9 million in the fourth quarter of 2018, the company said.

North American net sales through the wholesale channel increased $153.8 million, or 31.6%, to $641 million as compared with the fourth quarter of 2018, driven primarily by the expansion of the retail distribution network.

North America net sales through the direct channel increased $37.8 million, or 93.6%, to $78.2 million, as compared to the fourth quarter of 2018, driven primarily by growth from company-owned stores, which includes the acquisition of Sleep Outfitters. North America net sales through the direct channel, excluding Sleep Outfitters, increased approximately 30% as compared to the fourth quarter of 2018, the company said.

For the full year 2020, the company currently expects adjusted EBITDA to range from $575 million to $650 million.