Somnigroup International’s third-quarter profit fell to $163.5 million from $177.4 million a year earlier, and the mattress maker narrowed its full-year adjusted earnings forecast. The lower outlook comes as sales growth from an acquisition contrasts with declines at Mattress Firm and Tempur Sealy North America.
Profit was 74 cents a share, down from 83 cents a year earlier. Excluding one-time items, earnings were $1.04 a share, a penny below analysts’ expectations, according to FactSet.
Net sales rose 11% to $2.35 billion, helped largely by Somnigroup’s acquisition of Leggett & Platt, which added $372.6 million in sales. The total fell short of Wall Street’s $2.43 billion estimate. Mattress Firm sales declined 5.8% to $1.01 billion, hurt by softer online sales. Tempur Sealy North America sales also fell 5.8%, to $693.1 million, primarily because of market conditions, the company said.
Chief Executive Scott Thompson said the Leggett & Platt deal would help improve leverage, strengthen the supply chain and speed product development. Somnigroup is also investing in its brand portfolio, with upcoming launches intended to support retail partners.
The company now expects full-year adjusted earnings of $2.85 to $2.95 a share, compared with its previous range of $2.85 to $3.15. Analysts expect $3.11 a share. Somnigroup shares fell 8.1% to $59.00 in premarket trading.
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