Tempur Sealy Shares Drop On Q2 Miss, FY22 Outlook Cut - Tempur Sealy Intl (NYSE:TPX)

Tempur Sealy International Inc TPX reported second-quarter FY22 sales growth of 3.6% year-on-year, to $1.21 billion, missing the consensus of $1.27 billion.
On a constant currency basis, total net sales rose 5.1%, with a decline of 4.6% in the North America business segment and an increase of 68.2% in the International business segment.
The gross margin for the quarter contracted 330 basis points to 41%, and the gross profit declined 4.2% Y/Y to $496.5 million.
The operating margin was 11.9%, and operating income for the quarter dropped 35.6% to $143.9 million.
The adjusted EBITDA fell 24.7% Y/Y to $203.4 million.
Adjusted EPS of $0.58 missed the analyst consensus of $0.60.
The company held $110.3 million in cash and equivalents as of June 30, 2022. Cash provided by operating activities for six months totaled $66.5 million.
The Board of Directors has declared a Q3 cash dividend on its common stock of $0.10 per share, payable on August 25, 2022, to shareholders of record as of August 11, 2022.
Outlook: Tempur Sealy sees adjusted FY22 EPS of $2.60 - $2.80 (prior view $3.20 - $3.40) versus the consensus of $3.10.
The company expects full-year 2022 consolidated sales to be consistent with the prior year (prior view for growth of at least 10%).
Price Action: TPX shares are trading lower by 2.77% at $23.50 on the last check Wednesday.