Mattress Firm reports sales increase following Leggett & Platt acquisition

Mattress Firm reported net sales of $2,350.8 million, a 10.8% increase, which included $372.6 million from the Leggett & Platt acquisition. The company's adjusted gross margin was 43.0%, a decline from 45.6% in the prior year, primarily due to the product mix of Leggett & Platt. Separately, Tempur Sealy International net sales decreased 12.3% due to operational disruptions at the Dreams unit.

The acquisition boosted overall net sales for Mattress Firm, but the decline in adjusted gross margin and softer online sales performance indicate challenges in the current consumer environment. Operational issues at Dreams resulted in $50 million in lost sales and $25 million in reduced adjusted EBITDA for that unit.