TPX - Earnings call transcript Q2 2024 | Tempur Sealy International, Inc.

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Operator

Good day, everyone, and welcome to the Tempur Sealy Second Quarter 2024 Earnings Call. [Operator Instructions] Please note this call is being recorded and I will be standing by should you need any assistance.

It is now my pleasure to turn the conference over to Aubrey Moore with investor relations. Please go ahead.

Aubrey Moore

Good morning, everyone and thank you for participating in today's call.

Scott President President and are Rao, CEO; today Vice Executive Chief me Thompson, and Chairman, Bhaskar Joining Financial Officer.

forward-looking of quarterly that report affect in of discussed Litigation materially filings, company's due includes safe could on uncertainties on and These adversely forward-looking Form call statements a may subject involves are This Any differ the results to and which the it as annual are forward-looking factors is harbor statements company including statement provisions business. These XX-K Act update to made. variety the statements. SEC the obligation any reports Reform Securities on only XX-Q. to company's Form actual Private The its speaks no of forward-looking XXXX. undertakes that date the of factors

website non-GAAP is This information financial press be this commentary also morning's on with will posted information. the investor.tempursealy.com release Reconciliations of the non-GAAP financial investor the SEC. found at accompanying which and in filed can include company's

Our informations comments the in detailed provided the release. press supplement will

call introduction, And the to turn to Scott. my pleasure that it is with over

Scott Thompson

Thank Good morning, Aubrey. you, everyone.

you thank earnings call. for quarter on joining second And our XXXX us

with to in that, then quarter from highlights the call up the financial turn open I'll over We the more Q&A. begin Bhaskar will our some review After to and performance detail. for call

of the billion quarter approximately the versus adjusted EBITDA and In second million were $XXX improvement quarter, $X.X net X% second an of sales XXXX.

industry also our to our mitigate see adjusted of the outperformance EPS solid pleased volumes. We're Our leverage global ratio. $X.XX a to softer-than-anticipated improving grew X% market while impact

period. low-single-digit the industry declined quarter, Despite for more than decline mid-single-digit our in an anticipated the estimated

internal slightly expectations. Our sales only below were

in growth solid quarter. Our cost the and controls performance second strong healthy gross earnings resulted in margin

Turning to quarter a of highlights. second few

this our introduced quarter, by marketing again as driven of Tempur-Pedic initiatives. First, all-new our [ by recently emerged brands supported products. some and enduring adaptive market, strengths U.S. business outperformed top-performing innovation our consumer-centric and and ] the products the brand supported our by compelling

alleviate aches reminder: delivers As a release Our our leveraging by a updated Tempur compared which in to pains innovative and improvement pressure XX% designed to is standard materials. collection material,

ActiveBreeze The priced our strongly a customers. and ], for approximately King [ with system cooling at resonated XX,XXX sleep has discerning introduced recently heating product, ultra-luxury advanced

to addition product In integrates and with complementary $XX,XXX management, bundled tickets active driving upward Sleeptracker-AI climate premium this when is items. of

sales future signaling in to expected role and be this we offering perception innovation. enhancing is While moderate, for believe the ultra-premium plays an brand bedding volume important

uplift products, the X% Our our quarter, North the new in a industry by whole. ASP and American sales an growth direct-to-consumer driven experienced Tempur-Pedic business clearly outperforming as

mid-single-digit Our and e-commerce of retail a reported websites in the stores Tempur-Pedic experienced our e-commerce strong U.S. prior expansion traffic. and Stearns over platform year Foster & Tempur ASP both

price mitigating new the from soft grow distribution growth the units. in momentum America with performance our U.S. North and performed for our products Sealy well X our broad-based in by value-priced entry-level OEM distribution also demand drove impact mid-single-digit wins points. recent solid retailers. value-oriented bedding our products industry-wide Overall, mattress large and Our brands, wins within supported quarter, of These and wins

willingness media purchasing growth consistent third-party and innovation. their the was throughout indicating and with were ASP prior to engage targeted support America strategy, to And broad-based low-single-digits. both bedding Excluding outlets, focus we products digital retailers, balanced brands, our mattress all continue maintaining consumers on with execute journey. a consumers business, units our To North in down mattress their years, invest OEM to in

driving with our strong Foster momentum and fostered the Stearns new Our interest sprung Tempur TEMPUR-Adapt of recent and our consumer across quarter, our interest is & rolled-out collection. collection, new in spots creative has support and the of to supported product categories, customer assets the we launch second TV resonated our digital campaign newly introduced new which In the successful base lineup. continued targeted target offering

support the product craftsmanship. that superior continuing Foster also We're of Stearns quality with brand's & to comfort, campaigns and XXX-year reinforced legacy the

an advertising category. fastest-growing among Stearns & Foster to of in interest Google continue search the in drive investment As the level

In nearly in XX% Stearns overall Xx. search & a fact, we've by category realized outpacing interest January, search increase since Foster's of interest in the factor

Second highlight.

delivered International performance a to operating second pleased the strong year-over-year. performed In the the Dreams also And business are International the in solid business, background. U.K. against been results with We well what challenging our has a Tempur with continues generate challenging our market. team quarter, growth which in

rollout international and and of customization bases channels. International these diverse meet lineup the various of a concluded level new and a points, high The across a some recently key of range mattresses, Tempur innovation, is we features ensuring the markets pillows bed all-new price broader Our consumers of needs results. driver to consumer-centric

points third labor to In efficiencies Turning of basis Operationally, we margin XXX points contracts, optimized and to gross of basis we drive productivity consolidated highlight. the adjusted and expansion EBITDA margin adjusted enhanced supply the quarter, continue improve the XXX logistics. achieved gross expansion margin through year-over-year. second

contributed profitability These significant translated in coupled certain America gross into expansion We in to concurrently North segments. efforts, margin growth our and with margin while that improvement both successfully long-term increased initiatives. normalized a gross International commodity prices, investing

Approximately to retailers. periods quarter, demand. our the In our the flex and remain flexible flexibility continuing us agile the impact mitigate to support I'd while which operating a to of to second our operating like conditions, sales, of highlight with model our environment. the operating third-party dynamic business best-in-class helping brands muted total softer adapted our allows to of XX% Finally, to in model costs of delivering service

reported strongest sheet competition. from flow and robust In cash flow second solid we to XXXX. flow, balance cash quarter, a the million since differentiate free strong second us cash in free $XXX continue quarter Our our

Mattress X.Xx, We also our total for well acquisition. down of prepare And range. expect Firm our trend reported leverage target within we we debt-to-EBITDA leverage to as the

over Bhaskar. to call turn I'll that, with And

Bhaskar Rao

you, Thank Scott.

with adjusted was These $X.XX. XXXX, related share in terms planned consolidated the in As are costs second There approximately connection billion quarter and $X of approximately to primarily per incurred adjustments our in the Firm. are Mattress forma with all of $X.X of credit pro adjustments senior facility. consistent mentioned, the of are million earnings quarter, acquisition which were the of sales

launch Net X% points North North driven unit. OEM a costs. of to American the favorable efficiencies the and second declined in X%. On robust improved results. wholesale X% business offset XX.X%, improvements for new to sales quarter. channel XXX the margin These commodity, mix our basis the by win operational basis, partially declined were distribution and grew by impact Turning reported a channel the American gross direct

XXX newly by driven by in our investments improvement margin support margin, products North investments to improved points initiatives, business. basis support our gross investments American growth XX.X%, to growing direct-to-consumer to and launched advertising operating in including the offset partially

Now turning constant to currency on basis. International results. X% a International reported and X% on sales basis a grew

prior year, International to improved XXX the efficiencies basis driven compared favorable XX.X%, As launch our margin costs. points to operational gross and by

improvement margin basis growth to by the margin. venture XX.X%, campaigns operating investments by support joint partially driven XX International our to initiatives in points performance, offset gross Our declined advertising in and new Asia

consolidated the At debt the leverage of our balance Now target range items. credit sheet quarter, of flow was cash second ratio our the end within moving Xx And $X.X to and our facility under Xx. billion. X.Xx, less on cash was historical to

we for continue prepare to Mattress the acquisition. deleverage to Firm as expect We

challenge adjusted range, now prolonged notable XXXX in to profitability be Now a the $X.XX the of in growth midpoint guidance, turning range we $X.XX. A to to represents a of our expect expansion market. X% EPS At the of this year-over-year.

Our year guidance is based consistent in on growth in the with that full sales are approximately slight of year. the half prior back resulting sales year, the

This will digits, moderate through implies also volumes will the sequentially unit industry half the headwinds that expectations industry considers bedding but XXXX, will our down the back of be mid-single year. which U.S. continue

the distribution adjusted sales Our million industry advertising in as product to continued products, with recent due of the outperforming in an brands success approaching the midpoint EBITDA launches, the leading the approximately range. spend million the wins new of resulting we support at and new and from performance our $XXX $XXX U.S.

capital capital XXXX: of million, allocation significantly approximately year-over-year. of dividend and a $XX million CapEx of considers And spend XX% CapEx million. following of approximately the major CapEx level is also of prior $XXX by are This quarterly Our from of our growth increase projects driven guidance down years maintenance as of in an $XXX complete. $X.XX,

would like to modeling flag I a items. Lastly, few

of For XX%, share to we with million, shares. $XXX the rate XXXX, diluted $XXX million on expect full year D&A approximately to of a approximately interest XXX of tax a million million of count $XXX $XXX expense million

the Scott. over back that, call will With I turn to

Scott Thompson

Thank you, Nice Bhaskar. job.

plan medium-size Firm's a in a planned suppliers. several brief of have Firm is pleased I'm that Mattress a supply continue Mattress recently agreement is one Mattress with we of acquisition the multi-branded to update agreements with acquisition. as one have related to our we This of that share post-closing executed to Firm post-closing executed new our Firm successfully Turning retailer. for for Mattress to supply and preparation consistent mattress

in beyond can you any because acquisition will a We'll shared you investor July as acquisition we Thank this be not Firm on Call, be on we're not Update this on which replay what move And the we've we comments any litigation, Mattress understanding our providing process. your for further through the website. X find of taking questions on morning.

for please open operator, with questions. that, And up the call

Operator

first Susan Maklari our [Operator Instructions] question take We'll Sachs. with Goldman from

Susan Maklari

change with start a side through demand health about equation. overall the consumer obviously trends setup half Can you're with you down lot modestly, demand back year for of move full to the thinking things to talk be how did the and of digits? been focus about up be half I second of quarter. the to want relative and guide the on There's back -- how we as the up through volumes the the mid-single to quarter flat, your revenues the the

parts should some we to those the and broader perhaps about around Just how put to consumer. context relating it that, think

Scott Thompson

solid, sales mean, question. your the out, during the I'd look of the for you Thank started it, if at quarter quarter, pace call you I positive. Sure.

of we're for the the was holiday, that I optimistic kind probably loading think fairly up into going and retailers holiday.

holiday, quarter have it, with being was Then weak got Tempur bit the quarter during of to Sales sell-through post a towards kind even quarter. lighter end, the positive think you I though were I'll high-end to ask, And end to and actually to, solid full normal Then call were after the little flattish little I'll get get end. call the sales after back context: but and you X/XX. of didn't a what

setup So kind [ each On is ], continued we've the the item guide? reconciling have And quarter. that to probably think the primary of to gains do that's the you share want trend. box about I talk

Bhaskar Rao

Absolutely.

of U.S. in out, back continue International that continuation about And as Tempur the we've as growth new let's slight the fundamentally expect outperform new half, the that about would we we the as on what on standpoint, with doing think [indiscernible]. products seen OEM our success you the when say, to distribution we have better continued So a opportunity that in bit the share set. back and, Susan, well think you is focused a have channel the we the as And than competitive from pointed half

Operator

We'll of take America. with our Bank Jadrosich next from question Rafe

Rafe Jadrosich

of the wanted been I Great. bit environment? when end you environment? has into Have it looks year up has any the the changes promotional of a about across end market you promotional and the seen environment the on challenging back do held market just broader -- half think next price like even to though industry, pricing little you kind sort choppy. through about think with How the

Scott Thompson

for that I promotional it's period a this depth Generally of longer probably takes would a we'll the to, more of year. been promotion. last the call the promotional environment period that tad year -- bit say time, promotional is same as than opposed on Sure. it,

a manufacturers, promotional. have more some the share and become They little have have capacity of excess Some had issues. bit you

gain I'd share we you at it, we way profits. in ] [ what we share in our think focus internationally And look match the we the the reasonable call U.S. had share -- gains, promotions, good sales. try from to about and gain also If but on mainly

the look you stays ASP. the imagine as but from as if as bottom profit performance the profit our soft, would I market share far will If up from of standpoint, as link environment, good, share profit expect, stand depth, at be but a bouncing slightly a promotional or it kind more periods, standpoint, extremely I gains gains a far would around not in

Operator

comes Griffin with Bobby Raymond Question from James.

Robert Griffin

Bhaskar, to industry. a switch gross clearly margins, I over in want going lot to the on

You of guys the efficiencies. are regaining operational some

out, facility, level manufacturing margins? the maybe all of You different have how -- you deleverage, and this that commodity strip new do you some but things these gross tailwinds when with view

in we there a over-earning? predicting to mind think and Is should harder eventually about is it to getting do that as keep industry Is harder about basis. anything recovery? admittedly, an this it becoming And we Is on quarterly sustainable?

Bhaskar Rao

Bobby, of last think gross our great the I The We year half driven the way start margin back by green operational productivity. shoots about seeing question. performance: in really

Just support that is ourselves reminder, day, our COVID, committed that in out what that within to we we journey. And back. a investments back would we coming activity made from here seen to some as the well operational get customers. And we've standpoint an that we're of

have saw really year-over-year, able get the I gross sequentially look as as in it's legs I as flowing our legs the ] about [ margin not this just when an of to and about EBITDA there's year. journey. mentioned -- when I'm quarter, end left not well so [ drive only has half what I before, so back that operational excited journey, think margin gross the you is opportunity does durability we've from gross demonstrate, of from the And but It what margin we the when the about into really efficiencies been is EBITDA I standpoint It's standpoint, beginning -- just to both and margin, through of going that's second improvement as this that And ]. is a the the well. as the of XXXX, think

Scott Thompson

everybody think I'd expansion, also gross I easier the margin is growing. it's is that lot a market that get knows to to add when

when to be think, around. deliver margin market I gross in So the performance strong to able is for turns softer bodes market really outstanding, a well really

Operator

next Michael Our Lasser from comes with UBS. question

Michael Lasser

outlook XX know months? down, is if to answer, unemployment I is units but revenues come that's for that interest industry does this the and because mean what a next overall for rates tough but weakening, question for the

effort as some separately, an Sealy spot then market for more downturn? seem pulling and continues, an players out are the more it preserve Doesn't like, profitability. to be of And promotional aggressive, create in share opportunity better on be does softness coming gain activity even to of the an that this and in industry Tempur back advertising, even

Scott Thompson

thanks Yes, question. your for

XXX business put going just kind First interest because of around just decline if it call Bhaskar, to a basis interest about interesting. model interest point I'm as XXX all, probably you sit to rates in it. EBITDA, And decline of we basis it's of math today, million our kind at look rates in point what, a some to right? rates worth And of generate, $XX

Bhaskar Rao

Correct.

Scott Thompson

look also the probably you direct reasonable if retail that's bit missing but gotten little our be And through think debt, the a on our to piece benefit probably a than you're we business of that size. is would financing. And more you a get initially of has because probably variable side the cost

interest savings million $X about up from in our pick we So variable debt.

another, our it, operations. reduced throughout retail $X million up pick we cost of then in financing And call

point. compute, be of So Obviously we it, traffic indirect offers. there's first benefit. to would the allows aggressive customers rate our the don't That's that which an through, interest drive retail try help direct which benefit, also call to kind

a a sensitive for and think So be and you tailwind us probably interest little clearly than would the industry. more would

in some companies, manufacturers due of financial advertising might those like, that pullback in think the gain gain concerns, here in don't back. for industry us strategy while. quite far overseas. I been continue pulling yes, opportunity financial been U.S. and that back to to pulled be on concerns a has from you're And an share -- as, talking we standpoint. there's as share, have for as and it far sure, about, the As have some more People to

Operator

question with from Piper Peter next comes Keith Sandler. Our

Peter Keith

about was maybe the specifics. I American with a talk hoping few you just could more business, North

your a QX we're negative data get suggests think, than looking less little that did bit if industry-wide, I generally industry but was worse. at QX points sales

you bit competitive anything that a the floor of part front? maybe change the So pull models. And with on could does lapping

Bhaskar Rao

Absolutely.

was that better industry say a sequentially a a slightly from QX quantitative the to from standpoint, QX. Just let's

our when did we a really up -- you print, X% look if a on being to just year-over-year floor you mindful, on on year-over-year floor were factor out year-over-year benefited we've from on a the on we a basis. models However, be captured at performance, large basis, so basis, share have got units new And distribution. when you still models,

Operator

Truist. with Keith question comes from Our next Hughes

Keith Hughes

My question is International. on

in currency, quarter, expecting domestic. second number are directionally excluding of half? it said you're kind for for? what we that prepared numbers the You the the would be higher greater Or what X%, in comments probably is The looking the growth, than

Bhaskar Rao

Good first products are when is launching. of: mindful be just half the the of question [indiscernible] one In that's to year, new prior thing

that business double-digit the So back you our you once the approaching we've commented floor again. what factor underlying half on that see year International legacy model is is has been of growth and last through

in was the from really it's mid-to-high the the perspective. And is, not So implied as trend. call guide half it of back improvement happening it it's an what's in digit an International necessarily growth in single year,

You growth, should comping the we the see floor because models. can now, are you

Operator

with move KeyBanc will Brad to we Capital Markets. And next Thomas

Bradley Thomas

in will share more any XQ you're XQ? wondering color if could I things; and margin there's about of on you thinking the side Bhaskar, how about follow-up margins

Bhaskar Rao

Absolutely.

we So QX both is both standpoint to and QX. from in of expect a the improve gross the bottom-line quarter, each in margin to margin would EBITDA margin and

versus QX biggest, the gross pattern higher just the as our our reminder: third in a third the be quarter of seasonally, it Most is would QX. historical in -- margins indicate, or Just would as quarter so is

the as basis. a margins we EBITDA well gross as year-over-year sequentially both as both as well Again, in would margin expansion see

in we our little that half, rate that first one as is to expect lapping initiatives. the start expansion in saw of However, would than we half the of the we bit less mindful thing be productivity some a back

call is in I is the that we business. other of have some do just The out would beauty the flex items natural business model our

prior. we standpoint, called about an So million where out were from versus we've advertising $XXX

So the think as in year. that, you about the thinking that of just of rate back half facing holding about

Operator

with from Basham Our Securities. comes question Wedbush next Seth

Seth Basham

gains And share out the share, still strip you higher are on U.S. It within the the potentially. follow-up the more share you wins, seems limited. to business gaining Like are in but be if the especially, OEM of like end some that could performance

there be commentary any helpful. would So

as the the levels lower end see go such you industry many excess capacity seeing the of down despite are inventory could manufacturers then into we U.S. guys the that in at relatedly, measures in antidumping And we the effect U.S., gains the have? coming for you share more importers that of see the

Scott Thompson

Yes.

Let do should you And And goods. imported can me of inventories if mean, some up. Bhaskar. end. clean can I I of think me part see second theoretically the that, yes, low benefit the from coming on down are us question, I yes, the your the unpack that

profit profit I a certainly somewhat to know, there's low be Maybe, be standpoint. think us little from that at so sales huge of relatively will you don't standpoint, it or tailwind. unit As would end, a from it a

due industry than U.S., gain in. gain, is indicate of to share robust it was from look in gained we've probably you everything The amount mostly to would at promotional participate not to activity in go talking seen probably when less we share the which an the first When you quarter, we share chose that that standpoint, quarter. second we're it

just slightly been profits, sales. it's manage I've So as explained we sales and before, not but think I less,

the any based I seen, I everything a been would to U.S. can it's -- that. next out few little quarters gains share expect just have what less, see the in on And can't than I but further from see. us So for bit I've I

the side, the say would expanded quarter On gains quarter. probably International I versus second our share in first

more more the new market the very internationally. -- well the meat doing internationally. As of And mentioned, it's into moving Bhaskar product is getting we're

Operator

Our next with question Blee Blair. comes from Phillip William

Phillip Blee

key of the be continues newness about rest advertising it's of about speak a drivers in we in driver products about to so you appetite? sustainability It how that big should consumer into any demand how the going just space, assortment? next behind are seems performing of your some then whether to performance, year? then can And newer think variance the price, or relative And anything the of like

Scott Thompson

almost performed looking the shiny And robust relatively adapt as on to Sure. confidence, than is the would if by be would and wildly penny successful. which Sealy's is matter What older products. industry. mean a question. better product things the the definition, I XXXX Sealy obviously has Bhaskar, what business launch very We're products, to we launch the this don't no the know, the newer new foundational you'll in floor, been be of history to large largest the we consumer Those in continue brand, advertising, to that expect innovation. product. add industry anything drives the I forward be

Bhaskar Rao

I Scott. think, no.

Operator

We Instructions] move with Laura will Loop Champine Capital. [Operator with next

Laura Champine

about spend. your marketing really It's

category, or maybe drive top, so last whether just to you all, to I bottom working, people comes may those may it which dollars are try channels switched continuing spend mid-funnel. think, marketing at about to wanted talk if the or I focus, be quarter, you've where about going; not to the talked or to

Scott Thompson

and question. Yes, great

prepared it's media We the really mix. balanced remarks, said in mix. kind of a changed I As the haven't

activity. some redirected support our of promotional advertising to have We dollars

moved on think customers top dollars of is of and it at the about our little time are is products on promotional retail So the those way we the some from sale into which more so sale. to bit stores, funnel, other that to the moved we expense drive a is same product

as to between ahead EBITDA like in, the others. match comes decided us news for dollars promotion. so, last quarters be We've much good around customer pretty that off when and and in go The it's and had sale a product our a advertising of bit of will little is mismatch the just on neutral couple we've we on shift

Operator

with next Jefferies. will Jonathan We Matuszewski move with

Jonathan Matuszewski

gross cost expand on puts I just half? second quarter. elaborate the that takes that and on you margin then wanted kind in ask the tailwinds the for Could embedded this guide commodity drove the expectations and of for to about

Bhaskar Rao

Absolutely.

year-over-year So that we've from benefit basis et seen, is whether steel, the say perspective. continue to cetera, commodity about takes, I and points would MDI, when those be think a help it And I standpoint, call tailwinds on the that it puts us. cotton, chemicals, about CDI, XXX would

one thing guide and are mindful in However, ocean transportation, whatnot. the that of just cargo we is this of said the costs is it and specifically

half the drag So that of was bit quarter. in a second in and specifically the a first

the As I half think about sitting so or that the the half. improvement; we of extent of in you the improvements gross think back the over that see commodity if outlook in is EBITDA to the that as we how started do in have seeing is year, the first expect drive and here that margin little a get we saw bit year last improvement half we'll and today, really, is about of that the back half the benefit year commodities not benefit to into expectation moderate will that however, the flowed so back we

Operator

move will Reuter William next with We of America. Bank with

William Reuter

in the that industry? second fact to going are the that us the and expect interest benefit the what about trends be of feeling are products you It in The the to in about recent markets guess, you expectation your attribute decelerate across consumer than conflict little year. rates to industry I you will more lower the expectation moderate spending general? half with declines declines they consumer how may do is what seems that -- a weakness. bit Or telling anxiety to to is the

Scott Thompson

into, think recession/depression earlier. market are it mattress bedding markets much Yes, are The it great more question I really do the with comps has issues, and to which call went lower. specifically because I'll industry-specific

our of comps issue over. are economy. to step having general much It's easier, kind opposed the a more about comp really to of a us So as sunshine a opinion

Bhaskar Rao

That's back as half, said, to right. is think when half think quarter about second or you Scott when it about back And second comp and driven half. you half, expectations, first

slight a about very an on talking year-over-year just a rate are improvement We perspective.

Operator

Our Keith next Peter Piper comes from with Sandler. question

Peter Keith

distributors there's back And through been, few think outlook? partners. bankruptcy Is I liquidation. going one be the factored maybe, hit risks that half? percentage I sales the for So with what your guess full some of as to a a the is into would that And

Scott Thompson

considered also guidance. fully generally It's to portfolio. That's the low in insignificant bedding. in Yes. the It's

So are think, I current. of receivables what, XX%

Bhaskar Rao

Correct.

Scott Thompson

going call mattresses. them, in the retail some, elongated downturn, lower-end Clearly, retailers, we'll generally be blips. And would that in we've seeing an are some you're primarily seen we have And who pressure to -- but think are would not I financial talents, public, the in there don't some from be standpoint. significant but to obviously which it's consider a also from -- what I guidance, it's

Bhaskar Rao

seen, Just to double the back we've least health tap go in on that. history, time. at in COVID, of out in coming best that perhaps the When you my were retailers

we seen some However, would kind as Scott distributed. mentioned, say have pressure. What that broadly we is I are with the elongated of downturn that is

from with it it, is can relates at And fairly you an can mentioned, -- they and XX%. [indiscernible]. alternative standpoint it Scott a find the it that to as distribution products our of want that point. healthy And And is as exposure consumers -- credit interact the brands find to

Scott Thompson

mention I channel. away. another thing other customer is customer go The showing up doesn't The the in would up ends

of better some our quite And customers channels, job frankly, higher-end other a do moving products. into

those And realize distributed. we're you positive, you net so how it system, of well through sometimes the when -- changes some are and work

Operator

we last take Griffin question will Bobby James. our Raymond And with from

Robert Griffin

correct, floor was samples, want samples. given 'XX? revenue. just this detail was it on XQ to are then XQ? tailwind the notes floor around performance, to reported a that. -- year, more the And neutralize the parts So I we North year-over-year the what XQ sequential were to actually revenue Was a bit my about need think headwind a to hoping. could moving If shift I America Bhaskar, little to when timing talk it I Maybe would be

Bhaskar Rao

correct. That's

a benefit being slight was of it Call quarter. X% call on most basis, X%. in it quarter, in North it think And with consolidated America. the you So first a as the it second about

Scott Thompson

observation. astute Very

Operator

to over Thompson you. I Scott Thank And turn call remarks. the closing will now for

Scott Thompson

you, world, company our our outstanding do over and make our confidence around its Board retail XX,XXX Directors. That Thank leadership successful. brands. to what you. every you of our call partners, of for Thank operator. To you in And representation the the you day To ends to for your you company's our the and thank operator. your for today, shareholders thank employees thank lenders,

Operator

you Thank this you. does conclude Thank conference. And participation. your today's for

Tempur Sealy International (TPX) 6 Aug 242024 Q2 Earnings call transcript