Tempur Sealy International, Inc. (NYSE:TPX) Q4 2022 Earnings Call Transcript

Bhaskar Rao: Atul, that’s a good question. Let me answer it this way. Year-over-year, when you look at Q1 to Q1, there is a lot of things that are happening, whether it be FX, whether it be the war, the macro, the inflation, et cetera. So, let me do it this way. Let me go from Q4 to Q1. I think it’s a much more straightforward way to think about it. So, what we’ve implied for Q1 off of Q4 is that we would expect some slight revenue growth, from a seasonal standpoint, that would make sense. Then what you €“ obviously, from that incremental revenue, we’d expect some flow-through associated with that. And then what we have is that we have two items that are unique to the quarter when you think about it versus Q4. And that is the launch of our international products, as well as the ramp-up of our Stearns & Foster.

So, the way I think about that is €“ and brand advertising to support those launches. So again, relative to Q4 to Q1, what I would expect is a bit of revenue and the investments associated with those products, let’s call that brand advertising, as well as the investments for the launch in OpEx.

Operator: Thank you. I will now turn the call back over to Mr. Scott Thompson for any closing remarks.

Scott Thompson: Thank you, operator. To over our 12,000 employees around the world, thank you for what you do every day to make the company successful. To our retail partners, thank you for your outstanding representation of our brands. To our shareholders and lenders, thank you for your confidence in Tempur Sealy’s leadership team and Board of Directors. That ends our call today, operator. Thank you.

Operator: Ladies and gentlemen, that does conclude the conference for today. Thank you for your participation. You may now disconnect.