The U.S. mattress business isn't necessarily going through a nightmare scenario right now, but the companies likely aren't having sweet dreams.
In 2020 and 2021, as American consumers spent money on staycations and home improvements — including money spent on new beds — both traditional mattress makers and bed-in-box companies that delivered directly to consumers were expanding.
In 2022, with consumers pulling back spending due to inflation and recession concerns, business is slowing.
Tempur Sealy International, based in Lexington, Ky., saw sales hit $1.21 billion in its most recent fiscal quarter, but its EBITDA numbers fell 24.8 percent vs. the same period in 2021.
"We believe the overall U.S. mattress business, our largest market, had its toughest volume decline in 15 years," Tempur Sealy Chairman and CEO Scott Thompson said.
Utah-based Purple Innovation Inc. saw its net revenue fall 21.1 percent vs. the second quarter of 2021, but executives at Purple remained optimistic.
A new plant near Atlanta that opened in August 2021 may have had a shaky start, CEO Rob DeMartini said during a conference call, but is shaping up to be "a great productive asset."