Global mattress manufacturer Tempur Sealy International, Inc. has reported a decline in second quarter sales.

According to its latest trading update for Q2 ended 30 June 30 2024, total sales decreased 2.8% to $1,233.6 million as compared to $1,269.7 million in the second quarter of 2023, with a decrease of 3.8% in the North America business segment and consistent sales in the International business segment.

North America net sales decreased 3.8% to $978.4 million as compared to $1,016.8 million, while International net sales increased 0.9% to $255.2 million as compared to $252.9 million.

Gross margin was 44.9% as compared to 42.7% in the second quarter of 2023. Net income increased 14.8% to $106.1 million as compared to $92.4 million in the second quarter of 2023.

Company Chairman and CEO Scott Thompson commented: “We are pleased to see our global market outperformance mitigate the impact of softer than anticipated industry volumes.

“Despite an estimated mid-single digit industry decline over the quarter, more than our anticipated low-single digit decline for the period, our sales were only slightly below internal expectations. Our strong gross margin performance and solid cost controls resulted in healthy earnings growth in the second quarter.

“I am pleased to share that we recently executed a new post-closing supply agreement with one of Mattress Firm’s medium size mattress suppliers. This is one of several post-closing supply agreements we have executed in preparation for our planned acquisition of Mattress Firm, and is consistent with our plan for Mattress Firm to continue as a multi-branded retailer.

“Regarding the FTC’s challenge of the Mattress Firm acquisition, we are confident in the pro-competitive rationale for this transaction and look forward to presenting the facts of our case. We believe that a successful litigation process can be completed in the coming months, which would allow us to close the transaction in late 2024 or early 2025.”