Tempur Sealy International Inc ( TPX ) reported a first-quarter FY24 sales decline of 1.5% year-on-year to $1.189 billion, missing the analyst consensus estimate of $1.213 billion.

Sales in North America decreased 2.3% Y/Y, and the International segment sales fell 1.6% on a constant currency basis.

The gross margin for the quarter expanded 170 basis points to 43.1%, and the gross profit rose 2.5% Y/Y to $512.6 million.

The operating margin was 11.1%, and operating income for the quarter dropped 8.2% to $131.5 million.

Adjusted EPS of $0.50 beat the analyst consensus of $0.48.

The company’s Board of Directors declared a quarterly cash dividend of $0.13 per share, payable on May 30 to shareholders of record at the close of business on May 16.

The company held $92.5 million in cash and equivalents as of March-end.

“Although we look forward to the market’s recovery, this recessionary environment provides opportunity to highlight  the strength of our global business model and our leading competitive position,” said Chairman and CEO Scott Thompson.

Outlook: Tempur reiterated FY24 adjusted EPS of $2.60 – $2.90 versus the consensus of $2.74. The company sees sales growth of low to mid-single digit Y/Y versus an estimate of $5.12 billion.

Price Action: TPX shares are trading higher by 6.8% at $53.54 at the last check Tuesday.

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