SOMNIGROUP INTERNATIONAL INC.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
SGI$66.27+3.3%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001206264-26-000113
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001206264-26-000134
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 156 previous paragraphs and 165 current paragraphs.
77 unchanged; 65 reworded; 21 added; 12 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Acquisition of Leggett & Platt
Current report
•Total net sales increased 10.8% to $2,350.8 million as compared to $2,122.6 million in the third quarter of 2025, primarily driven by the inclusion of $372.6 million of Leggett & Platt net sales for the Leggett & Platt stub period.
Current report
•Operating income decreased 5.5% to $297.4 million as compared to $314.7 million in the third quarter of 2025, primarily driven by costs incurred during the quarter related to the Leggett & Platt Acquisition. Adjusted operating income, which is a non-GAAP financial measure, increased 6.0% to $364.2 million as compared to $343.7 million in the third quarter of 2025.
Current report
•Net income decreased 7.8% to $163.5 million as compared to $177.4 million in the third quarter of 2025. Adjusted net income, which is a non-GAAP financial measure, increased 13.7% to $228.9 million as compared to $201.4 million in the third quarter of 2025.
Current report
•Leggett & Plattnet sales were $372.6 million for the Leggett & Platt stub period, with $271.3 million reported in the Wholesale bedding and furnishings channel and $101.3 million reported in the Specialized products channel.
Current report
•Tempur Sealy International net sales decreased $38.9 million, or 12.3%, primarily driven by decreased net sales at Dreams of 34.7% following the implementation of a new ERP system amid challenging market conditions. The implementation resulted in temporary operational disruptions, including manufacturing delays and extended delivery times, which adversely affected customer conversion and resulted in lost sales. On a constant currency basis, International net sales decreased 11.7%. Net sales in the Direct bedding channel decreased 20.5% on a constant currency basis. Net sales in the Wholesale bedding and furnishings channel increased 4.0% on a constant currency basis.
Current report
•Mattress Firm gross margin was flat as compared to the third quarter of 2025. The factors impacting gross margin were investments in Mattress Firm's stores of 70 basis points and consumer financing costs. Additionally, in 2025, we incurred $12.7 million of charges related to the floor model transition associated with the refinement of Mattress Firm's multi-branded merchandising plan, which were not incurred in 2026.
Current report
•Leggett & Platt gross margin was 17.7% for the Leggett & Platt stub period.
Current report
•Mattress Firm operating expenses decreased $34.1 million, or 11.9%, and decreased 170 basis points as a percentage of net sales. The decrease was primarily driven by decreases in general, administrative and other expenses, other selling and marketing expenses and advertising expenses.
Current report
•Leggett & Platt operating expenses were $45.0 million for the Leggett & Platt stub period.
Current report
•Corporate operating expenses increased $36.5 million, or 96.3%. The increase in operating expenses was primarily driven by increased transaction costs related to the Leggett & Platt Acquisition.
Current report
•Mattress Firm operating income increased $13.3 million and operating margin improved 180 basis points. The improvement in operating margin was primarily driven by the operating expense leverage of 170 basis points.
Current report
•Leggett & Platt operating income was $21.0 million and operating margin was 5.6% for the Leggett & Platt stub period.
Current report
•Tempur Sealy North America operating income increased $15.8 million and operating margin improved 410 basis points. The improvement in operating margin was primarily driven by the improvement in gross margin of 630 basis points, partially offset by operating expense deleverage of 230 basis points.
Current report
NINE MONTHS ENDED SEPTEMBER 30, 2025
Current report
•Leggett & Plattnet sales were $372.6 million for the Leggett & Platt stub period with $271.3 million reported in the Wholesale bedding and furnishings channel, and $101.3 million reported in the Specialized products channel.
Current report
•Leggett & Platt gross margin was 17.7% for the Leggett & Platt stub period.
Current report
•Leggett & Platt operating expenses were $45.0 million for the Leggett & Platt stub period.
Current report
•Leggett & Platt operating income was $21.0 million and operating margin was 5.6% for the Leggett & Platt stub period.
Current report
In connection with the Leggett & Platt Acquisition, the Leggett & Platt Senior Notes of $1.5 billion remain outstanding as general unsecured senior obligations of Leggett & Platt, Incorporated and do not benefit from any guarantees. The outstanding senior notes consist of $500.0 million aggregate principal amount of 3.50% senior notes due 2027, $500.0 million aggregate principal amount of 4.40% senior notes due 2029, and $500.0 million aggregate principal amount of 3.50% senior notes due 2051.
Current report
On October 1, 2026, the Company prepaid $200.0 million of the outstanding Term B Loan with cash acquired from the Leggett & Platt Acquisition and cash from operations.
Removed paragraphs (12)
Previous report
Definitive Agreement with Leggett & Platt, Incorporated
Previous report
On April 13, 2026, Somnigroup International and Leggett & Platt, Incorporated ("Leggett & Platt") entered into a definitive agreement (the "Merger Agreement") for a proposed business acquisition in which Somnigroup International, through a wholly-owned subsidiary, will acquire Leggett & Platt in an all-stock transaction valued at approximately $2.5 billion based on the closing price of Somnigroup International's common stock as of April 10, 2026 and inclusive of Leggett & Platt's existing indebtedness.
Previous report
The transaction is currently anticipated to close by the end of the third quarter of 2026, subject to the satisfaction of customary closing conditions, including approval by Leggett & Platt’s shareholders and receipt of applicable regulatory approvals. The transaction does not require Somnigroup International shareholder approval. Following the close of the transaction, Leggett & Platt is expected to operate as a separate business unit within Somnigroup and to maintain its offices in Carthage, Missouri.
Previous report
•Total net sales decreased 3.0% to $1,823.5 million as compared to $1,880.8 million in the second quarter of 2025.
Previous report
•Operating income increased 12.1% to $201.7 million as compared to $179.9 million in the second quarter of 2025. Adjusted operating income, which is a non-GAAP financial measure, decreased 3.5% to $216.6 million as compared to $224.4 million in the second quarter of 2025. Both were primarily driven by realized sales and cost synergies.
Previous report
•Net income increased 12.0% to $110.9 million as compared to $99.0 million in the second quarter of 2025. Adjusted net income, which is a non-GAAP financial measure, increased 8.4% to $122.6 million as compared to $113.1 million in the second quarter of 2025.
Previous report
•Tempur Sealy International net sales increased $5.9 million, or 2.0%. On a constant currency basis, International net sales increased 1.3%. Net sales in the Direct channel decreased 1.6% on a constant currency basis. Net sales in the Wholesale channel increased 6.2% on a constant currency basis.
Previous report
•Corporate operating expenses decreased $2.0 million, or 3.8%. The decrease in operating expenses was primarily driven by decreased business combination charges related to the Mattress Firm Acquisition.
Previous report
•Mattress Firm operating income decreased $3.8 million and operating margin declined 30 basis points. The decline in operating margin was primarily driven by the decline in gross margin of 230 basis points, partially offset by operating expense leverage of 160 basis points. Additionally, in 2025, we incurred a $4.1 million loss on disposal of business associated with the divestiture of 73 retail stores, which were not incurred in 2026.
Previous report
•Tempur Sealy North America operating income increased $25.8 million and operating margin improved 550 basis points. The improvement in operating margin was primarily driven by the improvement in gross margin of 660 basis points, partially offset by operating expense deleverage of 260 basis points. Additionally, in 2025, we incurred a $9.8 million loss on disposal of business associated with the divestiture of Sleep Outfitters, which were not incurred in 2026.
Previous report
SIX MONTHS ENDED JUNE 30, 2025
Previous report
•Mattress Firm operating expenses increased $33.1 million, or 7.3%, and decreased 250 basis points as a percentage of net sales. The increase in operating expenses was primarily driven by the inclusion of operating expenses for a full quarter in the first quarter of 2026 as compared to the first quarter of 2025, which included operating expenses for the stub period.
Reworded paragraphs (65)
Previous wording
In this discussion and analysis, we discuss and explain the consolidated financial condition and results of operations for the three and six months ended June 30, 2026, including the following topics:
Current wording
In this discussion and analysis, we discuss and explain the consolidated financial condition and results of operations for the three and nine months ended September 30, 2026, including the following topics:
Previous wording
We are the world's leading bedding company, dedicated to transforming how the world sleeps. With superior capabilities in design, manufacturing, distribution and retail, we deliver breakthrough sleep solutions and serve the evolving needs of consumers in more than 100 countries worldwide through our fully-owned businesses, Tempur Sealy, Mattress Firm and Dreams.
Current wording
We are the world's leading bedding company, dedicated to transforming how the world sleeps. With superior capabilities in design, manufacturing, distribution and retail, we deliver breakthrough sleep solutions and serve the evolving needs of consumers in more than 100 countries worldwide through our fully-owned businesses, Mattress Firm, Leggett & Platt, Tempur Sealy and Dreams.
Previous wording
We operate in three segments: Mattress Firm, Tempur Sealy North America and Tempur Sealy International. These segments are strategic business units that are managed separately. Our Mattress Firm segment consists of retail stores and distribution centers located in the U.S. Our Tempur Sealy North America segment consists of manufacturing, distribution and retail subsidiaries and licensees located in the U.S., Canada and Mexico (other than Mattress Firm retail and distribution locations). Our Tempur Sealy International segment consists of manufacturing, distribution and retail subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America (other than Mexico). Corporate operating expenses are not included in any of the segments and are presented separately as a reconciling item to consolidated results. We evaluate segment performance based on net sales, gross profit and operating income. For additional information refer to Note 12, "Business Segment Information," included in Part I, ITEM 1 of this Report.
Current wording
We operate in four segments: Mattress Firm, Leggett & Platt, Tempur Sealy North America and Tempur Sealy International. These segments are strategic business units that are managed separately. Our Mattress Firm segment consists of retail stores and distribution centers located in the U.S. Our Leggett & Platt segment consists of manufacturers located in North America, Europe, Asia-Pacific and Latin America that design and produce a broad range of engineered components and products for bedding, furniture, flooring, textile, automotive and industrial end markets. Our Tempur Sealy North America segment consists of manufacturing, distribution and retail subsidiaries and licensees located in the U.S., Canada and Mexico (other than Mattress Firm retail and distribution locations). Our Tempur Sealy International segment consists of manufacturing, distribution and retail subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America (other than Mexico). Corporate operating expenses are not included in any of the segments and are presented separately as a reconciling item to consolidated results. We evaluate segment performance based on net sales, gross profit and operating income. For additional information, refer to Note 12, "Business Segment Information," included in Part I, ITEM 1 of this Report.
Previous wording
Our portfolio includes the most highly recognized brands in the industry, including Tempur-Pedic®, Sealy® and Stearns & Foster® and our global omni-channel platform enables us to meet consumers wherever they shop, offering a personal connection and innovation to provide a unique retail experience and tailored sleep solutions.
Current wording
Our portfolio includes the most highly recognized brands in the industry, including Tempur-Pedic®, Sealy®, Stearns & Foster® and Sleepy's®, enhanced by Leggett & Platt's diversified component engineering expertise. Our global omni-channel platform and extensive consumer touchpoints enable us to meet consumers wherever they shop, offering a personal connection and innovation to provide a unique retail experience and tailored solutions.
Previous wording
As of June 30, 2026, we operated 2,842 company-owned stores, including 2,155 Mattress Firm stores, Tempur Sealy owned stores, Dreams stores and joint venture stores. Our distribution model operates through an omni-channel strategy. The Mattress Firm segment sells products through one channel: Direct. The Tempur Sealy North America and Tempur Sealy International operating business segments sell products through two channels: Direct and Wholesale. Our Direct channel includes product sales through company-owned stores, online and call centers. Our Wholesale channel includes all product sales to third-party retailers, including third-party distribution, hospitality and healthcare.
Current wording
As of September 30, 2026, we operated 2,875 company-owned stores, including 2,152 Mattress Firm stores, Tempur Sealy owned stores, Dreams stores and joint venture stores. Our distribution model operates through an omni-channel strategy. The Mattress Firm segment sells products through one channel: Direct bedding. The Leggett & Platt segment sells products through two channels: Wholesale bedding and furnishings and Specialized products. The Tempur Sealy North America and Tempur Sealy International operating business segments sell products through two channels: Direct bedding and Wholesale bedding and furnishings. Our Direct bedding channel includes sales to consumers through our company-owned retail stores and websites, consisting of branded and private-label bedding products. Our Wholesale bedding and furnishings channel includes sales to third-party bedding retailers and other manufacturers, consisting of branded bedding products, private-label and OEM bedding products and components, as well as furniture components, private-label finished furniture, flooring products, textiles and geo components. Our Specialized products channel includes sales to automotive manufacturers and material-handling and heavy construction industries, consisting of automotive comfort and in-car motion systems, hydraulic cylinders and other engineered products.
Previous wording
The global bedding industry was challenged in 2025 due to certain macroeconomic pressures on the consumer, which continued during the first half of 2026. Ongoing geopolitical conflicts, including trade disputes and the imposition of tariffs, along with the U.S. government shutdowns, may also introduce further uncertainty for the consumer. We have taken actions to mitigate the impact of proposed tariffs, and we implemented pricing actions to mitigate the remaining impact. The majority of our products sold in the U.S. are also manufactured in the U.S. Accordingly, we believe proposed tariffs will not have a material impact on our results of operations in 2026. However, the duration and extent of tariffs remain uncertain, and we are continuing to evaluate the potential future impacts of the imposition of tariffs. We expect to outperform the bedding industry as a result of our investments in new product launches and continued investments in innovation, quality, advertising and customer service.
Current wording
The global bedding industry was challenged in 2025 due to certain macroeconomic pressures on the consumer and remains pressured in 2026. Ongoing geopolitical conflicts, including trade disputes and the imposition of tariffs, along with the U.S. government shutdowns, may also introduce further uncertainty for the consumer. We have taken actions to mitigate the impact of tariffs, and we implemented pricing actions to mitigate the remaining impact. The majority of our products sold in the U.S. are also manufactured in the U.S. Accordingly, we believe tariffs will not have a material impact on our results of operations in 2026. However, the duration and extent of tariffs remain uncertain, and we are continuing to evaluate the potential future impacts of the imposition of tariffs. We expect to outperform the bedding industry as a result of our investments in new product launches and continued investments in innovation, quality, advertising and customer service.
Previous wording
Mattress Firm operates as a separate business segment. Mattress Firm's financial results for the period April 1, 2025 through June 30, 2025 and February 5, 2025 through June 30, 2025 (the "stub period") are included in our Condensed Consolidated Financial Statements for the three and six months ended June 30, 2025, respectively.
Current wording
Mattress Firm operates as a separate business segment. Mattress Firm's financial results for the period July 1, 2025 through September 30, 2025 and February 5, 2025 through September 30, 2025 (the "Mattress Firm stub period") are included in our Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2025, respectively.
Previous wording
In 2026, we plan to launch an all new collection of Stearns & Foster products in North America. This new line is designed to further elevate our high‑end traditional innerspring brand by introducing incremental technologies, expanding our range of hybrid offerings and providing a refreshed aesthetic.
Current wording
In 2026, we launched an all-new collection of Stearns & Foster products in North America. This new line is designed to further elevate our high‑end traditional innerspring brand by introducing incremental technologies, expanding our range of hybrid offerings and providing a refreshed aesthetic.
Previous wording
A summary of our results for the three months ended June 30, 2026 include:
Current wording
A summary of our results for the three months ended September 30, 2026 includes:
Previous wording
•Gross margin was 44.8% as compared to 44.0% in the second quarter of 2025. Adjusted gross margin, which is a non-GAAP financial measure, was 45.1% as compared to 44.2% in the second quarter of 2025.
Current wording
•Gross margin was 42.0% as compared to 44.9% in the third quarter of 2025. Adjusted gross margin, which is a non-GAAP financial measure, was 43.0% as compared to 45.6% in the third quarter of 2025.
Previous wording
•Earnings per diluted share ("EPS") increased 10.6% to $0.52 as compared to $0.47 in the second quarter of 2025. Adjusted EPS, which is a non-GAAP financial measure, increased 9.4% to $0.58 as compared to $0.53 in the second quarter of 2025.
Current wording
•Earnings per diluted share ("EPS") decreased 10.8% to $0.74 as compared to $0.83 in the third quarter of 2025. Adjusted EPS, which is a non-GAAP financial measure, increased 9.5% to $1.04 as compared to $0.95 in the third quarter of 2025.
Previous wording
Net sales increased 4.0%, and on a constant currency basis increased 3.0%. The change in net sales was driven by the following:
Current wording
Net sales increased 10.8%, and on a constant currency basis increased 10.8%. The change in net sales was driven by the following:
Previous wording
•Mattress Firmnet sales decreased $26.6 million, or 2.8%, primarily driven by store closures. Mattress Firm same store sales increased slightly as compared to the second quarter of 2025. All Mattress Firm sales are reported through the Direct channel.
Current wording
•Mattress Firmnet sales decreased $62.5 million, or 5.8%, primarily driven by softer online sales. Mattress Firm same store sales decreased slightly as compared to the third quarter of 2025. All Mattress Firm sales are reported through the Direct bedding channel.
Previous wording
•Tempur Sealy North America net sales decreased $36.6 million, or 5.7%, primarily driven by market conditions. Net sales to Mattress Firm increased 11.6% to $294.0 million as compared to $263.5 million in the second quarter of 2025. These sales are eliminated on a reported basis. Net sales in the Wholesale channel decreased $29.6 million, or 5.5%. Net sales in the Direct channel decreased $7.0 million, or 6.7%, primarily driven by a decrease in sales from the divestiture of Sleep Outfitters in the second quarter of 2025.
Current wording
•Tempur Sealy North America net sales decreased $43.0 million, or 5.8%, primarily driven by market conditions. Net sales to Mattress Firm increased 0.4% to $315.2 million as compared to $314.0 million in the third quarter of 2025. These sales are eliminated on a reported basis. Net sales in the Wholesale bedding and furnishings channel decreased $44.9 million, or 7.2%. Net sales in the Direct bedding channel increased $1.9 million, or 1.7%.
Previous wording
Gross margin improved 360 basis points. The primary drivers of changes in gross margin by segment are discussed below:
Current wording
Gross margin declined 290 basis points. The primary drivers of changes in gross margin by segment are discussed below:
Previous wording
•Tempur Sealy North America gross margin improved 660 basis points. The improvement in gross margin was primarily driven by the achievement of synergies from the Mattress Firm Acquisition of 480 basis points, operational efficiencies of 210 basis points and favorable mix of 110 basis points. These improvements were partially offset by commodity cost inflation before pricing actions of 110 basis points.
Current wording
•Tempur Sealy North America gross margin improved 630 basis points. The improvement in gross margin was primarily driven by the achievement of synergies from the Mattress Firm Acquisition of 420 basis points, approximately $20.0 million of tariff refunds, or 300 basis points, and favorable mix of 100 basis points. These improvements were partially offset by inflation of 120 basis points, including elevated transportation costs.
Previous wording
•Tempur Sealy International gross margin declined 80 basis points. The decline in gross margin was primarily driven by commodity cost inflation before pricing actions of 100 basis points, partially offset by operational efficiencies.
Current wording
•Tempur Sealy International gross margin declined 360 basis points. The decline in gross margin was primarily driven by unfavorable mix of 160 basis points and temporary deleverage at Dreams of 150 basis points.
Previous wording
Operating expenses decreased $17.8 million, or 2.8%, and increased 10 basis points as a percentage of net sales. The primary drivers of changes in operating expenses by segment are explained below:
Current wording
Operating expenses increased $52.2 million, or 8.1%, and decreased 70 basis points as a percentage of net sales. The primary drivers of changes in operating expenses by segment are explained below:
Previous wording
•Tempur Sealy North America operating expenses decreased $1.4 million, or 0.3%, and increased 460 basis points as a percentage of net sales. The decrease in operating expenses was primarily driven by decreases in general, administrative and other expenses and other selling and marketing, partially offset by investments in advertising.
Current wording
•Tempur Sealy North America operating expenses increased $3.0 million, or 1.4%, and increased 230 basis points as a percentage of net sales. The increase in operating expenses was primarily driven by increases in general, administrative and other expenses, partially offset by decreases in advertising expenses and other selling and marketing expenses.
Previous wording
•Tempur Sealy International operating expenses increased $2.6 million, or 2.5%, and increased 20 basis points as a percentage of net sales. The increase in operating expenses was primarily driven by investments in growth initiatives.
Current wording
•Tempur Sealy International operating expenses increased $1.8 million, or 1.8%, and increased 510 basis points as a percentage of net sales. The increase in operating expenses was primarily driven by investments in growth initiatives.
Previous wording
Research and development expenses for the three months ended June 30, 2026 were $10.2 million, compared to $7.8 million for the three months ended June 30, 2025, an increase of $2.4 million, or 30.8%.
Current wording
Research and development expenses for the three months ended September 30, 2026 were $8.6 million, compared to $8.8 million for the three months ended September 30, 2025, a decrease of $0.2 million, or 2.3%.
Previous wording
Operating income increased $195.7 million and operating margin improved 520 basis points. The primary drivers of changes in operating income and operating margin by segment are discussed below:
Current wording
Operating income decreased $17.3 million and operating margin declined 210 basis points. The primary drivers of changes in operating income and operating margin by segment are discussed below:
Previous wording
•Tempur Sealy International operating income increased $11.2 million and operating margin improved 50 basis points. The improvement in operating margin was primarily driven by the improvement in gross margin of 40 basis points and operating expense leverage of 10 basis points.
Current wording
•Tempur Sealy International operating income decreased $31.1 million and operating margin declined 870 basis points. The decline in operating margin was primarily driven by the decline in gross margin of 360 basis points and operating expense deleverage of 510 basis points.
Previous wording
•Corporate operating loss decreased $44.5 million, which positively impacted our consolidated operating margin.
Current wording
•Corporate operating loss increased $36.3 million, which negatively impacted our consolidated operating margin.
Previous wording
Interest expense, net, decreased $13.5 million, or 18.6%. The decrease in interest expense, net, was primarily driven by lower interest rates on outstanding variable rate debt.
Current wording
Interest expense, net, decreased $10.6 million, or 15.2%. The decrease in interest expense, net, was primarily driven by decreased average levels of outstanding variable rate debt.
Previous wording
Our income tax provision increased $83.9 million driven by an increase in income before income taxes and certain discrete items, as discussed below. Our effective tax rate for the six months ended June 30, 2026 as compared to the prior year increased 4,970 basis points. The effective tax rate as compared to the U.S. federal statutory rate for the six months ended June 30, 2026 and 2025 included the net favorable impact of the deductibility of stock compensation in the U.S., which was offset by the unfavorable impact of discrete items.
Current wording
Our income tax provision increased $3.7 million due to a decrease in income before income taxes and certain discrete items, as discussed below. Our effective tax rate for the three months ended September 30, 2026 as compared to the prior year increased by 280 basis points. The effective tax rate as compared to the U.S. federal statutory rate for the three months ended September 30, 2026 and 2025 included the impacts of state and local taxes as well as the net favorable impact of other discrete items.
Previous wording
SIX MONTHS ENDED JUNE 30, 2026 COMPARED TO THE
Current wording
NINE MONTHS ENDED SEPTEMBER 30, 2026 COMPARED TO THE
Previous wording
Net sales decreased 3.0%, and on a constant currency basis decreased 3.3%. The change in net sales was driven by the following:
Current wording
Net sales increased 6.6%, and on a constant currency basis increased 5.9%. The change in net sales was driven by the following:
Previous wording
•Mattress Firmnet sales increased $265.6 million, or 17.2%, primarily driven by the inclusion of net sales for a full quarter in the first quarter of 2026 as compared to the first quarter of 2025, which included Mattress Firm for the stub period. All Mattress Firm sales are reported through the Direct channel.
Current wording
•Mattress Firmnet sales increased $203.1 million, or 7.8%, primarily driven by the inclusion of net sales for a full quarter in the first quarter of 2026 as compared to the first quarter of 2025, which included Mattress Firm for the Mattress Firm stub period. All Mattress Firm sales are reported through the Direct bedding channel.
Previous wording
•Tempur Sealy North America net sales decreased $179.3 million, or 13.3%. Net sales in the Wholesale channel decreased $140.6 million, or 12.6%, primarily driven by the accounting elimination of sales to Mattress Firm for a full quarter in the first quarter of 2026 as compared to the first quarter of 2025, which eliminated sales to Mattress Firm for the stub period. Net sales in the Direct channel decreased $38.7 million, or 17.1%, primarily driven by a decrease in sales from the divestiture of Sleep Outfitters.
Current wording
•Tempur Sealy North America net sales decreased $222.3 million, or 10.7%. Net sales in the Wholesale bedding and furnishings channel decreased $185.5 million, or 10.6%, primarily driven by the accounting elimination of sales to Mattress Firm for a full quarter in the first quarter of 2026 as compared to the first quarter of 2025, which eliminated sales to Mattress Firm for the Mattress Firm stub period. Net sales in the Direct bedding channel decreased $36.8 million, or 11.0%, primarily driven by a decrease in sales from the divestiture of Sleep Outfitters.
Previous wording
•Tempur Sealy International net sales increased $53.2 million, or 8.9%, primarily driven by strong performance in key markets. On a constant currency basis, International net sales increased $25.7 million, or 4.3%. Net sales in the Direct channel increased 3.0% on a constant currency basis. Net sales in the Wholesale channel increased 6.5% on a constant currency basis.
Current wording
•Tempur Sealy International net sales increased $14.3 million, or 1.6%, primarily driven by strong performance in key markets. On a constant currency basis, International net sales decreased $11.9 million, or 1.3%. Net sales in the Direct bedding channel decreased 5.3% on a constant currency basis. Net sales in the Wholesale bedding and furnishings channel increased 5.6% on a constant currency basis.
Previous wording
Gross margin improved 80 basis points. The primary drivers of changes in gross margin by segment are discussed below:
Current wording
Gross margin improved 110 basis points. The primary drivers of changes in gross margin by segment are discussed below:
Previous wording
•Mattress Firm gross margin declined 220 basis points. The decline in gross margin was primarily driven by product mix of 100 basis points, consumer financing costs of 90 basis points and investments in Mattress Firm's stores of 80 basis points. Additionally, in 2025, we incurred $17.4 million of one-time business combination accounting adjustments related to the Mattress Firm Acquisition, which were not incurred in 2026.
Current wording
•Mattress Firm gross margin declined 140 basis points. The decline in gross margin was primarily driven by product mix of 70 basis points, consumer financing costs of 70 basis points and investments in Mattress Firm's stores of 70 basis points. Additionally, in 2025, we incurred $17.4 million of one-time business combination accounting adjustments related to the Mattress Firm Acquisition, which were not incurred in 2026.
Previous wording
•Tempur Sealy North America gross margin improved 1,590 basis points. The improvement in gross margin was primarily driven by the achievement of synergies from the Mattress Firm Acquisition of 480 basis points, elimination of intercompany sales to Mattress Firm of 290 basis points, operational efficiencies of 190 basis points and favorable mix. These improvements were partially offset by commodity cost inflation before pricing actions. Additionally, in
Current wording
•Tempur Sealy North America gross margin improved 1,260 basis points. The improvement in gross margin was primarily driven by the achievement of synergies from the Mattress Firm Acquisition of 570 basis points, elimination of intercompany sales to Mattress Firm of 200 basis points, approximately $20.0 million of tariff refunds, or 110 basis points, and favorable mix. These improvements were partially offset by inflation. Additionally, in 2025, we incurred $78.0 million of one-time business combination accounting adjustments related to the Mattress Firm Acquisition, which were not incurred in 2026.
Previous wording
•Tempur Sealy International gross margin improved 40 basis points. The improvement in gross margin was primarily driven by operational efficiencies.
Current wording
•Tempur Sealy International gross margin declined 80 basis points. The decline in gross margin was primarily driven by unfavorable mix, inflation and temporary deleverage at Dreams.
Previous wording
Operating expenses increased $5.5 million, or 0.5%, and decreased 120 basis points as a percentage of net sales. The primary drivers of changes in operating expenses by segment are explained below:
Current wording
Operating expenses increased $57.7 million, or 3.1%, and decreased 110 basis points as a percentage of net sales. The primary drivers of changes in operating expenses by segment are explained below:
Previous wording
•Mattress Firm operating expenses decreased $22.0 million, or 8.1%, and decreased 160 basis points as a percentage of net sales. The decrease was primarily driven by decreases in general, administrative and other expenses and advertising expenses, partially offset by increases in other selling and marketing.
Current wording
•Mattress Firm operating expenses decreased $1.0 million, or 0.1%, and decreased 210 basis points as a percentage of net sales. The decrease in operating expenses was primarily driven by decreases in advertising expenses and general, administrative and other expenses, partially offset by increases in other selling and marketing expenses.
Previous wording
•Tempur Sealy North America operating expenses increased $3.6 million, or 1.7%, and increased 260 basis points as a percentage of net sales. The increase in operating expenses was primarily driven by investments in advertising, partially offset by decreases in general, administrative and other expenses and other selling and marketing.
Current wording
•Tempur Sealy North America operating expenses increased $1.6 million, or 0.3%, and increased 360 basis points as a percentage of net sales. The increase in operating expenses was primarily driven by investments in advertising, offset by decreases in general, administrative and other expenses and other selling and marketing expenses.
Previous wording
•Tempur Sealy International operating expenses increased $17.4 million, or 8.4%, and decreased 10 basis points as a percentage of net sales. The increase in operating expenses was primarily driven by investments in growth initiatives.
Current wording
•Tempur Sealy International operating expenses increased $19.2 million, or 6.2%, and increased 160 basis points as a percentage of net sales. The increase in operating expenses was primarily driven by investments in growth initiatives.
Previous wording
•Corporate operating expenses decreased $43.6 million, or 31.5%. The decrease in operating expenses was primarily driven by decreased transaction costs related to the Mattress Firm Acquisition in 2025, which were not incurred in 2026.
Current wording
•Corporate operating expenses decreased $7.1 million, or 4.0%. The decrease in operating expenses was primarily driven by decreased transaction costs related to the Mattress Firm Acquisition, partially offset by transaction costs related to the Leggett & Platt Acquisition.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
On August 26, 2026, the Company completed its Leggett & Platt Acquisition for an aggregate purchase price of approximately $730.0 million, net of cash acquired of $560.2 million. The total consideration of $1.3 billion consisted of approximately 19.9 million shares of the Company's common stock valued at $64.09 per share, which represents the closing price per share of the Company's common stock on the NYSE on the trading day immediately prior to the date of acquisition, with the value of any fractional shares paid in cash.
Current report — wording carried from elsewhere
Leggett & Platt operates as a separate business segment. Leggett & Platt's financial results for the period August 26, 2026 through September 30, 2026 (the "Leggett & Platt stub period") are included in our Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2026.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•Mattress Firm gross margin declined 230 basis points. The decline in gross margin was primarily driven by product mix of 100 basis points, consumer financing costs of 70 basis points and investments in Mattress Firm's stores of 60 basis points.
Previous report — wording carried elsewhere
2025, we incurred $78.0 million of one-time business combination accounting adjustments related to the Mattress Firm Acquisition, which were not incurred in 2026.