Total net sales of Tempur Sealy, a leading bedding provider, increased 8.4 per cent to $690.9 mn in the first quarter of fiscal 2019 as compared to $637.4 mn in the first quarter of 2018. Gross margin under US generally accepted accounting principles was 40.8 per cent in the quarter as compared to 41.5 per cent in the first quarter of 2018.
North America net sales rose 12.2 per cent to $544.0 mn as compared to $485.0 mn in the first quarter of 2018. On a constant currency basis, North America net sales improved 12.7 per cent as compared to the first quarter of 2018. Gaap gross margin was 37.6 per cent as compared to 37.9 per cent in the first quarter of 2018. Gaap operating margin was 11.8 per cent as compared to 11.1 per cent in the first quarter of 2018.
In the reported period, international net sales decreased 3.6 per cent to $146.9 mn as compared to $152.4 mn in the first quarter of 2018. On a constant currency basis, international net sales hiked 3.0 per cent as compared to the first quarter of 2018. Gaap gross margin was 52.7 per cent as compared to 53.0 per cent in the first quarter of 2018. Gaap operating margin was 17.2 per cent as compared to 18.8 per cent in the first quarter of 2018.
“The strength of our brands and product, supported by the power of our world-wide omni-distribution strategy, drove our operating results. North America was a major highlight with outstanding growth in our Tempur-Pedic products and a solid performance by Sealy and Stearns & Foster products. While we recently introduced the most innovative product suite in our company’s history, we will be in market testing new revolutionary products that we expect will extend our leadership position. This aligns to our initiative to provide the most innovative bedding solutions in the world. Additionally, we continue to make progress toward optimising our omni-distribution model, as we expanded both in wholesale and direct channels. A highlight for the quarter was global direct to consumer which grew to a record $75 mn in the quarter while expanding margin. This channel represented 11 per cent of global revenues,” Tempur Sealy International, Inc. Chairman and CEO Scott Thompson said.
