Revenue during the quarter went up marginally by 0.15 percent to $722.10 million from $721 million in the previous year period. Gross margin for the quarter contracted 67 basis points over the previous year period to 39.69 percent. Total expenses were 91.76 percent of quarterly revenues, up from 89.36 percent for the same period last year. That has resulted in a contraction of 240 basis points in operating margin to 8.24 percent.

Operating income for the quarter was $59.50 million, compared with $76.70 million in the previous year period.

However, the adjusted operating income for the quarter stood at $85.40 million compared to $80.60 million in the prior year period. At the same time, adjusted operating margin improved 65 basis points in the quarter to 11.83 percent from 11.18 percent in the last year period.

Tempur Sealy International, Inc. chairman and chief executive officer Scott Thompson commented, "This represents the eighth consecutive quarter of double-digit adjusted EPS growth. These solid first quarter results are a byproduct of the team’s focus on our long-term initiatives and the overall positive worldwide economy underlying the bedding industry. We are pleased with the progress of our new product launches around the world and the positive early market reactions."

The company has spent $12 million cash to meet investing activities during the quarter as against cash outgo of $12.80 million in the last year period.

The company has spent $76 million cash to carry out financing activities during the quarter as against cash outgo of $82.90 million in the last year period.

Cash and cash equivalents stood at $42.50 million as on Mar. 31, 2017, up 14.56 percent or $5.40 million from $37.10 million on Mar. 31, 2016.

Working capital increases sharply
Tempur Sealy International, Inc. has recorded an increase in the working capital over the last year. It stood at $90.10 million as at Mar. 31, 2017, up 67.47 percent or $36.30 million from $53.80 million on Mar. 31, 2016. Current ratio was at 1.16 as on Mar. 31, 2017, up from 1.08 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 14 days for the quarter from 41 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 48 days for the same period last year.

Days inventory outstanding has decreased to 20 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding was almost stable at 51 days for the quarter, when compared with the previous year period.