Tempur Sealy International (TPX) Q2 results: Net Sales: $715.0M (+8.2%), Retail: $658.2M (+9.3%), Direct: $30.6M (+1.0%), Bedding: $657.4M (+9.8%); Gross Profit: $268.3M (+5.3%); Operating Income: $50.3M (+14.3%).
Gross margin declined 2.9% yoy to 37.5% due to increased investments in new products and related marketing. CEO Mark Sarvary expects significant margin improvement in 2H.
2014 Guidance: net sales: $2.925B - 2.975B; adjusted EBITDA: $410M - 430M; adjusted EPS: $2.60 - 2.85.
Shares now down 5.1% after hours.