Scott L. Thompson
on quarter you call. Thank you, for us Good earnings and XXXX third morning, thank joining our Aubrey.
performance, color few formally I I the Financial certainly in the his organization, Bhaskar will Bhaskar as a on begin, Before you years Then I'll Over want at with this company's quarter's the respect our to of operating appointment highlighting an performance has on great Tempur some be CFO. congratulate including key begin a he financial our Bhaskar's quarterly and overall he as Sealy, recent I'll XX Officer. Chief deal asset by detail. items review EVP have morning earned providing and in quarter. within the
you our Finally, I'll conclude questions. by remarks with updating corporate long-term our objectives, we'll on and then prepared some take
seven now into are our transformation our of model. months We distribution
offset sure worldwide XX% we customer, the in knew who it these to loss a be sales. I'm largest our our would over We with earnings relationship As represented with previously recall, Firm, terminated of you challenge of associated Mattress sales. our April,
partners, omni-channel healthier into a we only we distribution time, a we that over company stronger, It's of built our where progress. are From sit we that efforts. still profitable of are we diversified will fully transform more sales we industry own Tempur earnings, our commitment encouraged brands, our but with direct today, on believe base will Sealy recapture initial recover and early, a confident the lost our not we balanced model. by loyal customer strength and the However, lost of earnings our because leading retail very our because but would skill of and
included only effort large hurricanes North the during proud a Firm three with in large that expectations. I'm the loss of of sales, America store. XX% performance were national Turning but and in million line while quarter, growing team's deteriorating North was this impact included the of also Mattress excluding This one underperformance North challenging $XXX the third of the retail customer. Firm, sales to Sealy not of Despite due these a America, sales American Mattress performed challenges, expectations by to below Tempur-Pedic our our largely department quarter in
North Excluding grew Mattress store, sales Sealy one department this America in Firm and X%.
the relatively our the Turning soft up environment. to volume deleverage profitability, sale despite pretty held margins well and
North American And even and increased in from the basis year actually XX American deleverage after fact, margin prior absorbing Tempur-Pedic adjusted headwinds gross points. Our versus gross fixed-cost margin our declined North commodities.
margin North we are experienced XXX points, American we North some American pleased the with fixed-cost in Although our and deleverage, performance. basis invested as adjusted margin declined marketing
margins and over growth accounts the in past focus strong our direct-to-consumer and overhead. three, three were manufacturing, key And, Our mix a two, areas: improvements driven low-profit key products. shift business. a away worldwide in from by in been have These area of logistics Number year-and-a-half.
Our us of a decline to the in margin allowed performance sales quarter. good the offset portion
$XX adjusted in a our quarter. second $XXX EBITDA EBITDA total the declined sales significant million, million improvement decline is While adjusted from which declined million, the $XX
X.X resulting generation cash for declining to of our above which in in times, times. is our in million us Our to slightly debt quarter down the the pay allowing X.X leverage outstanding, was target $XXX long-term only quarter, ratio
other next We to continue allocations of possibly to quarters, the including a our resuming consider down shareholder to we capital, in debt be pay over then alternatives program. few and and position repurchase expect expect
Now share early strategy. the our and provide international our forfeited far, our strength and in are initiatives to on driven our of time the hurricanes recapture performance of approximately we recaptured to sales in like thus of because touch This partners one-third the the our progress have stages been sales. take figure entirely our were for over of sales couple America, it existing our our we our one particularly highlights of recapture brands the sales customer. by North In in Nevertheless, putting recapture from a by of with are initial impact about results. North marketplace. higher deteriorating not mattress place would performance, American I'd is large recapture, into we're the and as encouraged retail implementing initial we lean Recapture, products talk
products are materially into retailers While their which retail constrained leaned some floor from already, existing their by our them modifying others have slotting plans. agreements, prevent
expect Sealy As these we our expire, agreements Foster begin primarily to benefiting from these Stearns representation see retailers, to brands. and & increased
current following in the following the of the on form forfeiture hinges direct-to-consumer underpenetrated of current the currently increased win presence of products strategy velocity increased business of with and that Mattress Internet. recapture in are X,XXX customers; of fair doors; areas growth: increased share our four on balance customers; in of doors markets Firm's our new lastly, our Our share
seeing the but master keeping to our more innovating pedal be expect XXXX and while of a the in products. product launch velocity benefits benefits starting new efforts, talk about with portfolio, We'll those by Sealy already and increase share with foot marketing. at and of We of partners on brand products complete balance real of these later. the the our retail new the a enhancing our evident aggressive our continuously both our continued of lineup successful current will expansion We're Tempur-Pedic
our of expanding to presence many expanding be stores. footprint store are expect these or opened Mattress stores by retail Sealy-only new with grow of markets existing will Firm-dominated our vast in new expansion. whom Tempur Tempur through by partners, also majority Sealy-dominant their We The
important X,XXX brands. stores In capitalize With in Foster, Stearns we brands to new on addition, by X some strong Tempur-Pedic, most to & new marketplace, looking opportunity. into industry: eager our no to the opened carrying stores Sealy retailers entries Mattress are expect be longer the seize the the retail of and Firm
of In retail Tempur-Pedic stores. addition, we'll own open some our
is stores in North certain America in our markets, to preference establish underserved with makes these retailers, to sense our in some for partner While it us third-party locations.
our complement will third-party stores existing company-owned our expect retail partners. We
consultants and each our educate Tempur-Pedic we opportunities showrooms exclusive our markets. on created the market. markets further awareness, a in eight stores, of In opened product, been consumers not stores Our our they high-end provide future those but sales own and also will have have only the local sleep successful, halo generate where brand have throughout knowledgeable
the and return expect invested to period have high on stores six they Our own contributions a we be have minimal, about months, of a capital. payback revenue overall while
In position experience, in bedding open growth feel they fact, and strategy, working Tempur-Pedic some stores. by store approximately Mattress market XX by company-owned increase share should on existing in future need the of for a as providing by good sum us one our and for historic with online new number America. company-owned recapture capturing the fair our our Tempur-Sealy stores, to our tools up Firm profit based we North retailers competitive stores, the was retailers of generates healthy note same-store North opening same To our win, I sale about contribution XX%. business, with quarter Tempur-Pedic by limited to sales the dominant American
our areas, positive geographic as completed market since quarter to quarter as with sales have the increased Europe rollout. was across the their all year. a business, second trend Turning third compared last X% to by solid driven International new growth having largest This the products
to continues be Our in performance outstanding. Asia
the provide incremental sales cost margins, quarter in expect (XX:XX) the to coming headwind these boost but planned, to years. we launch for were nice product As a a international launches
deal has performance opportunities continuing made to our pleased summary, with are our worldwide a I'm and this delivered international overcame and While drive explore challenges and with the difficult quarter external both ever-changing financially progress operationally. team some brands the In markets. we recent internationally, to they solid
Bhaskar, I'd we conditions to unprecedented the the Lastly, response call to the team's over before highlight experienced tremendous the turning to in like quarter.
top I team our these job of to and that believe ensure was First, on priority outstanding front. safety did our the during an the storms employees,
little our of facilities Puerto safe employees Rico for Texas, And accounted of our in and impacted Fortunately, the sustained all all damage. luckily, areas very immediately. Florida across were and
process. to will that long time, in rebuilding we recovery do help part Second, understood our we to and this these wanted take communities a
increased to up we partnership significantly So stepped affected support contributions and, charitable in our the normal areas. in with efforts recovery retailers, charitable our contributions
people results. process. comfort generous rebuild to quarter to With that, these provided Bhaskar I'll As us tough financial through we and to have some call the hope begin over recovery during turn other their lives, the the donations third walk
