Somnigroup Q2 sales miss estimates, partly due to store closures

Somnigroup International

06/08/2026 11:53

Overview
Bedding company's Q2 sales declined 3% yr/yr, missing analyst expectations
Adjusted EPS for Q2 met analyst expectations; adjusted net income slightly beat estimates
Company gross margin expanded and operating cash flow hit a Q2 record

Outlook
Somnigroup now expects 2026 adjusted EPS between $2.85 and $3.15
Company says outlook is subject to risks from tariffs, geopolitical events and macroeconomic uncertainty

Result Drivers
STORE CLOSURES - Mattress Firm net sales declined due to store closures, though same store sales were slightly up
SYNERGIES AND EFFICIENCIES - Tempur Sealy North America gross margin improved, driven by synergies from the Mattress Firm acquisition, operational efficiencies and product mix
INPUT COST PRESSURE - International gross margin declined due to commodity cost inflation before pricing actions, partly offset by operational efficiencies

Company press release: ID:nPn3CLkfwa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.82 bln
$1.88 bln (10 Analysts)
Q2 Adjusted EPS
Meet
$0.58
$0.58 (11 Analysts)
Q2 EPS
 
$0.52
 
Q2 Adjusted Net Income
Slight Beat*
$122.60 mln
$122.25 mln (9 Analysts)
Q2 Net Income
 
$110.90 mln
 
Q2 Adjusted Operating Income
Miss
$216.60 mln
$222.74 mln (9 Analysts)
Q2 Adjusted Gross Margin
 
45.10%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the home furnishings peer group is "buy"
Wall Street's median 12-month price target for Somnigroup International Inc. is $95.00, about 36.5% above its August 5 closing price of $69.58
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
Aug 4 - Haverty Furniture Q2 sales rise, profit doubles
Aug 6 - Arhaus Q2 revenue beats estimates
Aug 5 - Italy's Natuzzi Q1 revenue falls on weak demand, co launches restructuring plan 

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)