LEXINGTON, Ky. – Tempur Sealy Worldwide reported fourth quarter web revenue of $101.7 million, a 42.2% decline in contrast with $175.8 million in the identical quarter of 2021. Impacted by decreased demand worldwide, gross sales for the quarter ended Dec. 31, 2022, slid 12.6% to $1.2 billion, in contrast with almost $1.4 billion in the identical quarter final yr.

Earnings per share for the quarter decreased to 57 cents in contrast with 88 cents through the fourth quarter of 2021.

For the total yr, the corporate reported a web revenue of $455.7 million, a 27% decline from web revenue of $624.5 million within the prior yr. Gross sales for 2022 held principally regular at $4.9 billion.

“Our fourth quarter and full yr outcomes are the second-best gross sales and adjusted web revenue outcomes for like durations within the firm’s historical past,” stated Scott Thompson, chairman and CEO. “Though the strong market we skilled in 2021 represented a difficult comparability for 2022, we outperformed the worldwide bedding market, increasing our main place within the world {industry}. We continued to put money into industry-leading product innovation and promoting spend, develop our manufacturing capability, drive omni-channel enlargement worldwide and execute on our balanced capital allocation technique.

“As we enter 2023, we count on success throughout our model, product and omnichannel initiatives to ship development on each the highest and backside line because the {industry} experiences a steady however subdued demand atmosphere.”

North American web gross sales dropped 12.2% within the fourth quarter to $932.3 million in contrast with $1.1 billion in the identical quarter final yr. The corporate attributed the decline to “macroeconomic pressures impacting U.S. shopper habits.”

Web gross sales via the corporate’s wholesale channel in North America decreased $123.7 million, or 13.2%, to $812.9 million as in contrast with the fourth quarter of 2021. North America web gross sales via the direct channel decreased $6.1 million, or 4.9%, to $119.4 million, as in contrast with the fourth quarter of 2021.

Tempur Sealy’s worldwide web gross sales dropped 14.3% to $255.1 million as in contrast with $297.5 million within the fourth quarter of 2021. The corporate attributed the decline to unfavorable overseas alternate charges. Worldwide web gross sales via the wholesale channel decreased $18.6 million, or 16.6%, to $93.2 million as in contrast with the fourth quarter of 2021. Worldwide web gross sales via the direct channel decreased $23.8 million, or 12.8%, to $161.9 million, as in contrast with the fourth quarter of 2021.

Throughout the fourth quarter of 2022, the corporate repurchased 1 million shares of its frequent inventory for a complete value of $30.2 million. Over the previous 12 months, Tempur Sealy has repurchased 19.6 million shares of its frequent inventory for a complete value of $667.4 million. As of Dec. 31, 2022, the corporate had about $750 million out there below its present share repurchase authorization.

Along with reporting 2022 outcomes, Tempur Sealy adjusted its earnings per share to between $2.60 and $2.80 based mostly on its gross sales outlook for mid-single digit year-over-year development.

“We’re happy to challenge 2023 steering that targets development on each the highest and backside line,” Thompson stated. “This contemplates Tempur Sealy’s continued outperformance throughout the bedding {industry} worldwide pushed by our key product, model and omnichannel initiatives. Our sturdy aggressive place continues to supply us development alternatives.”

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