Somnigroup International Inc., the world's largest bedding company, reported a slight increase in total net sales for the fiscal year ending December 31, 2024, reaching $4.93 billion, up from $4.93 billion in 2023. The company's net income also rose by 4.4% to $384.3 million, compared to $368.1 million in the previous year. Earnings per diluted share increased to $2.16, reflecting a 3.8% growth from $2.08 in 2023. The company's gross margin improved to 44.2%, up from 43.2% in the prior year, driven by favorable commodity costs and operational efficiencies.
In terms of operational performance, the North America segment experienced a decline in net sales, decreasing by 1.7% to $3.79 billion, while the International segment saw a 6.7% increase, reaching $1.14 billion. The company attributed the North America decline to ongoing macroeconomic pressures affecting consumer behavior. The International segment's growth was primarily driven by successful new product launches. The company also reported a significant increase in operating income, which rose by 4.4% to $634.2 million.
Strategically, Somnigroup completed the acquisition of Mattress Firm on February 5, 2025, for approximately $5.1 billion, funded through a combination of cash and stock. This acquisition is expected to enhance Somnigroup's market presence and operational capabilities, as Mattress Firm operates over 2,200 retail locations and a growing e-commerce platform. Following the acquisition, the company plans to operate in three segments: Tempur Sealy North America, Tempur Sealy International, and Mattress Firm. The company also announced plans to divest 73 Mattress Firm retail locations and its Sleep Outfitters subsidiary in the second quarter of 2025.
As of December 31, 2024, Somnigroup employed over 20,000 individuals and operated approximately 2,800 retail stores globally. The company reported a total debt of $3.84 billion, a significant increase from $2.59 billion in 2023, primarily due to financing related to the Mattress Firm acquisition. The company anticipates that its leverage ratio will stabilize between 2.0 to 3.0 times in the year following the acquisition. Looking ahead, Somnigroup expects to continue its focus on product innovation and market expansion, aiming to outperform the bedding industry despite ongoing macroeconomic challenges.
About SOMNIGROUP INTERNATIONAL INC.
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