Tempur Sealy Announces Contract Extension With Mattress Firm Inc.

Rhea-AI Summary

Tempur Sealy International, Inc. (NYSE: TPX) has signed a multi-year extension to its supply agreement with Mattress Firm, the largest specialty mattress retailer in the U.S. This extension maintains the same terms as the current agreement, allowing Tempur Sealy to continue supplying its Sealy and Tempur brands. The partnership has significantly contributed to sales growth for both companies since its inception in 2019. CEO Scott Thompson expressed optimism about the growth potential this agreement brings, reinforcing a stronger domestic bedding industry.

Positive

• Continued partnership with Mattress Firm enhances sales potential.
• Retention of terms ensures stability in supply agreement.
• Strong sales growth for Tempur Sealy and Mattress Firm since 2019.

Negative

• None.

LEXINGTON, Ky., Aug. 19, 2021 /PRNewswire/ -- Tempur Sealy International, Inc. (NYSE: TPX, "Tempur Sealy" or "the Company") today announced that it has signed a multi-year extension to its current supply agreement with Mattress Firm, Inc. ("Mattress Firm"), the largest specialty mattress retailer in the U.S. The new extension is on the same terms as the current agreement.

Tempur Sealy entered into a mutually beneficial agreement with Mattress Firm in 2019 to supply them with Tempur Sealy's portfolio of highly innovative and highly sought-after products. Distribution of the Company's Sealy and Tempur mattress brands, now the number one and number two top selling brands in the U.S.*, through more than 2,300 Mattress Firm stores provides consumers with additional purchasing options consistent with the Company's strategy of ensuring its products are available how and where the customer wants to shop. The relationship has resulted in strong sales for both Tempur Sealy and Mattress Firm.

Tempur Sealy International, Inc. Chairman and CEO Scott Thompson commented, "Mattress Firm is a valued retail partner and we are thrilled with the growth potential the extension of our agreement provides for both companies. We believe it also creates a stronger domestic bedding industry, which since 2019 has realized increasing average selling prices and experienced growing advertising share of voice for bedding products engaging consumers and driving foot traffic to all stores."

About the Company

Tempur Sealy is committed to improving the sleep of more people, every night, all around the world. As a global leader in the design, manufacture and distribution of bedding products, we know how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, we deliver award-winning products that provide breakthrough sleep solutions to consumers in over 100 countries.

Our highly recognized brands include Tempur-Pedic®, Sealy® and Stearns & Foster® and our non-branded offerings include value-focused private label and OEM products. Our distinct brands allow for complementary merchandising strategies and are sold through third-party retailers, our Company-owned stores and e-commerce channels. This omni-channel strategy ensures our products are offered where ever and how ever customers want to shop.

Lastly, we accept our global responsibility to serve all stakeholders, our community and environment.  We have and are implementing programs consistent with our responsibilities.

*See Furniture Today's Top 20 U.S. Bedding Producers methodology that includes SEALY® and STEARNS & FOSTER® products in Sealy ranking. https://www.furnituretoday.com/research-and-analysis/top-bedding-producers-tsi-brand-duo-takes-top-two-spots/

Investor Relations Contact

Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com

View original content:https://www.prnewswire.com/news-releases/tempur-sealy-announces-contract-extension-with-mattress-firm-inc-301358450.html

SOURCE Tempur Sealy International, Inc.

FAQ

What is the latest update from Tempur Sealy regarding Mattress Firm?

Tempur Sealy has extended its supply agreement with Mattress Firm, maintaining the same terms and ensuring continued collaboration.

How long is the new supply agreement between Tempur Sealy and Mattress Firm?

The new agreement is a multi-year extension of their current supply agreement.

What impact does the supply agreement have on Tempur Sealy's sales?

The extended agreement is expected to enhance sales growth for both Tempur Sealy and Mattress Firm.

What brands does Tempur Sealy supply to Mattress Firm?

Tempur Sealy supplies its Sealy and Tempur brands to Mattress Firm, which are top-selling in the U.S.

When was the original agreement with Mattress Firm signed?

The original supply agreement between Tempur Sealy and Mattress Firm was signed in 2019.