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Tempur Sealy (TPX) Guides Lower-Than-Street Q1 Sales

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Tempur Sealy International, Inc. (TPX - Free Report) provided an update for first-quarter 2022 sales growth rate, which is below the Zacks Consensus Estimate. Shares of this bedding products maker dropped 3.7% during the trading session on Mar 31 but gained 3.3% in after-market trading on the same day.

The company projects consolidated net sales growth of 15% on a year-over-year basis. This is below the consensus mark of 22.1% growth rate for first-quarter 2022. This was mainly due to the recent geopolitical setbacks, lower consumer confidence and new COVID variant outbreaks in the international markets. Tempur Sealy's international business accounted for 17% of total sales for 2021, which includes operations in Europe, Asia-Pacific and Latin America.

Yet, Tempur Sealy still expects double-digit sales for the first quarter, marking the 10th of the last 11 quarters of double-digit sales growth.

Pertaining to the news, Chairman and CEO of Tempur Sealy, Scott Thompson said, "We remain committed to making investments in marketing, product launches, and our operations this year to support the long-term growth trajectory of the business. However, in response to the current geopolitical uncertainty permeating the European market, we have elected to postpone the launch of the new international line of Tempur products that was planned for 2022 to the first quarter of 2023."

The company has been navigating supply chain disruptions, inflationary environment and COVID-related disruptions well and delivered sales growth of 29% and EPS growth of 31% in fourth-quarter 2021, given a strong market position and global operating scale.

Over the past two years, Tempur Sealy has been able to solidify its position as a market-leading, vertically integrated, omni-channel global company with solid fundamentals in a growing category. TPX believes that it remains well positioned in 2022 to continue to grow sales and EPS in double digits.

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Coming to share price performance, shares of this Zacks Rank #3 (Hold) company have declined 40.6% year to date compared with the industry’s 23.5% decline. Earnings estimates for the current year have decreased to $3.73 per share from $3.75 over the past seven days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key picks

Some better-ranked stocks in the Zacks Retail-Wholesale sector include Genesco Inc. (GCO - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Tapestry, Inc. (TPR - Free Report) .

Genesco sports a Zacks Rank #1 at present. The company has a trailing four-quarter earnings surprise of 2,739.6%, on average. Shares of the company have gained 35.1% in the past year.

The Zacks Consensus Estimate for Genesco’s 2023 sales suggests an increase of 2.4% from the year-ago level.

Arcos Dorados currently carries a Zacks Rank #1. ARCO has a long-term earnings growth of 31.3%. Shares of the company have surged 60.4% in the past year.

The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 10.3% and 62.5%, respectively, from the year-ago period.

Tapestry presently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 28.2%, on average. The stock has declined 9.4% in the past year.

The Zacks Consensus Estimate for Tapestry’s 2022 sales and EPS suggests growth of 17.5% and 22.9%, respectively, from the year-ago level.

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