#United States #Dallas #Mattress Firm #Somnigroup #Sealy

Somnigroup International Inc. Announces Financial Results for Second Quarter 2025

Somnigroup International Inc. (NYSE: SGI), the global leader in the bedding industry, has recently disclosed its financial performance for the second quarter of 2025, ending June 30. The results illustrate notable growth and strategic enhancements, particularly following the integration of Mattress Firm into its operations.

Financial Performance Overview

In the second quarter of 2025, Somnigroup achieved total net sales of $1,880.8 million, representing a significant increase of 52.5% compared to $1,233.6 million recorded during the same period in 2024. This surge is largely attributable to the inclusion of approximately $948.8 million from Mattress Firm’s sales. However, net sales were impacted by the accounting adjustments following the consolidation, specifically a $263.5 million reduction from the Tempur Sealy North America segment’s sales to Mattress Firm.

Gross margin rose to 44.0%, up from 42.0% in Q2 2024, while the adjusted gross margin improved to 44.2% from the previous year, indicating enhanced operational efficiencies and cost management practices across the company.

Operating income showed a modest increase of 3.8%, totaling $179.9 million versus $173.3 million in the prior year. When adjusted, operating income surged 24.3% to $224.4 million, thanks primarily to the acquisition synergies from Mattress Firm. Despite these gains, the company reported a 6.7% decrease in net income, totaling $99.0 million compared to $106.1 million in Q2 2024. Earnings per diluted share (EPS) also fell by 21.7%, bringing it down to $0.47 from $0.60.

Business Segment Highlights

Somnigroup's diversified business segments, including Tempur Sealy North America, Tempur Sealy International, and Mattress Firm, have played a critical role in these financial results.

• - Mattress Firm reported net sales of $948.8 million, indicating a strong performance. The gross margin for Mattress Firm stood at 35.6%, while its operating margin was at 6.7%.

• - Tempur Sealy North America faced challenges, with net sales declining to $638.4 million from $978.4 million, primarily due to the prior mentioned accounting elimination and reduced wholesale sales, which dipped by 30.8% year-on-year.

• - On a brighter note, Tempur Sealy International experienced a solid growth of 15.0%, with net sales increasing to $293.6 million. This was bolstered by the successful launch of new products that resonated well with consumers.

Future Guidance

In light of these positive results, Somnigroup has raised its financial guidance for the full year 2025. The company projects adjusted EPS in the range of $2.40 to $2.70. This projection is based on approximately 11 months of anticipated Mattress Firm operations and reflects the ongoing commitment to optimizing operational synergies and enhancing shareholder value.

CEO Scott Thompson commented on the achievements stating, “We are pleased to report another solid quarter of market outperformance… Teams are aligned, and we are realizing both cost and sales synergies ahead of plan.” This highlights the strategic integration of Mattress Firm and the strength of Somnigroup's operational capabilities.

Conclusion

Somnigroup International Inc. continues to navigate a dynamic industry landscape effectively, showcasing resilience and adaptability in its operations. The company remains focused on delivering quality sleep solutions while ensuring robust profitability for stakeholders. As it moves forward, market watchers will keenly observe its growth trajectory, particularly with the Mattress Firm integration and other operational initiatives aimed at enhancing its competitive position in the global bedding market.