Somnigroup International Inc. (NYSE:SGI) saw its shares dip 1.20% in after-hours trading Thursday, as investors reacted tepidly to its updated full-year forecast despite a modest earnings beat for the second quarter.
The global bedding leader reported adjusted earnings per share of $0.53, narrowly surpassing analysts’ expectations of $0.52. Revenue came in at $1.88 billion, essentially matching the Street’s estimate of $1.89 billion. The significant 52.5% year-over-year revenue increase was largely attributed to the $948.8 million boost from its recent acquisition of Mattress Firm.
However, the company’s forward-looking guidance for fiscal 2025 failed to generate enthusiasm. Somnigroup projected full-year earnings in the range of $2.40 to $2.70 per share. While the midpoint of $2.55 comes in slightly above the analyst consensus of $2.52, the broad range introduced a note of uncertainty for the market.
“We are pleased to report another solid quarter of market outperformance, driven by the successful combination with Mattress Firm, the North American launch of our new Sealy line, and another quarter of robust sales growth for our international business,” stated Chairman and CEO Scott Thompson.
International operations were a standout this quarter, with sales climbing 15% year-over-year to $293.6 million. On a constant currency basis, sales growth in this segment was 10%.
Somnigroup noted the integration of Mattress Firm is progressing better than anticipated, with teams fully aligned and both cost and revenue synergies materializing ahead of expectations. Direct-to-consumer sales now account for 66% of total revenue, a sharp increase from 23% in the same period last year.
The company’s profitability also improved, with adjusted gross margin expanding to 44.2%, up from 42.0% in the prior-year quarter. Adjusted operating income rose 24.3% to $224.4 million, another result bolstered by the Mattress Firm deal.
In addition, the board declared a quarterly cash dividend of $0.15 per share, payable on September 5, 2025, to shareholders of record as of August 21, 2025.
Somnigroup International stock price
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