About Tempur Sealy International

Tempur Sealy International, Inc. operates as a designer, manufacturer, distributor, and retailer of bedding products. The company delivers products that provide breakthrough sleep solutions to consumers in over 100 countries. The company’s highly recognized brands include Tempur-Pedic, Sealy and Stearns & Foster and its non-branded offerings include private label and original equipment manufacturer (OEM) products. The company’s powerful distribution model operates through an omni-channel strategy. The company’s products are sold through third-party retailers, its more than 750 company-owned stores and its e-commerce platforms. The company has a global manufacturing footprint around the world. The company focuses on developing the most innovative bedding products in all the markets it serves, making significant investments in its iconic global brands and optimizing its worldwide omni-channel distribution. Segments The company operates in two segments, North America and International. North America segment consists of manufacturing, distribution and retail subsidiaries and licensees located in the U.S., Canada and Mexico. International segment consists of manufacturing, distribution and retail subsidiaries, joint ventures and licensees located in Europe, the Asia-Pacific and Latin America (other than Mexico). Products and Brands The company has a comprehensive offering of products that appeal to a broad range of consumers, some of which are covered by one or more patents and/or patent applications. The company also routinely introduces new mattress models, launch new products and update its existing mattress products in each of its segments. The company’s portfolio of product brands includes many highly recognized brands, including Tempur-Pedic, Sealy and Stearns & Foster, which are described below: Tempur-Pedic - The Tempur brand is the company’s specialty innovation category leader designed to provide life changing sleep for its wellness-seeking consumers. The company’s proprietary Tempur material precisely adapts to the shape, weight and temperature of the consumer and creates fewer pressure points, reduces motion transfer and provides personalized comfort and support. Stearns & Foster - The Stearns & Foster brand offers the company’s consumers high quality mattresses built by certified craftsmen who have been specially trained. The brand is designed and built with precise engineering and relentless attention to detail and fuses new innovative technologies with time-honored techniques, creating supremely comfortable beds. Sealy - The Sealy Posturepedic brand was engineered to provide all-over support and body alignment to allow full relaxation and deliver a comfortable night's sleep. Cocoon by Sealy - The Cocoon by Sealy brand is the company’s offering in the below $1,000 e-commerce space, made with the high quality materials that consumers expect from Sealy, sold online at www.cocoonbysealy.com and delivered in a box directly to consumers' doorsteps. Non-Branded - The company’s non-branded product offerings include private label and OEM products, including mattresses, pillows and other bedding products and components at a wide range of price points. The addition of non-branded offerings expands the company’s capabilities to service third-party retailers to capture manufacturing profits from bedding brands outside its own. The company’s portfolio of retail brands includes Tempur-Pedic retail stores, Sleep Outfitters, Sleep Solutions Outlet, Dreams, SOVA and a variety of other retail brands internationally, which operate in various countries. The retail brands named above are described below: Tempur-Pedic Retail Stores - Tempur-Pedic retail stores are designed for the consumers that prefer to purchase directly from the manufacturer, and for those seeking a more personalized and educational sales experience. These retail boutiques are strategically located in high traffic, premium retail centers with customer demographics that closely align to the Tempur-Pedic customer profile. Sleep Outfitters - Sleep Outfitters is a regional bedding retailer with locations across five states in the U.S. Sleep Outfitters is a specialty mattress retailer that serves consumers across a wide range of price points with its extensive selection of Tempur-Pedic, Sealy and Stearns & Foster products. Sleep Solutions Outlet - Sleep Solutions Outlet stores serve as a channel of high-quality comfort returns, as well as discontinued or factory close-out mattresses and bases. Dreams - Dreams is the leading specialty bedding retailer in the United Kingdom (U.K.). As a multi-branded retailer, Dreams sells a variety of products across a range of price points. In addition to operating over 200 brick-and-mortar stores and an e-commerce channel throughout the U.K., Dreams also manufacturers the majority of the bedding products it sells in-house. SOVA - SOVA is a highly respected and well-established premium bedding chain in Sweden. The company’s stores are connected to the urban areas of Stockholm, Gothenburg and Malmö. The assortment primarily focuses on premium to ultra-premium brands and well trained sales staff targeting to sell quality beds with a very high average selling price. In 2024, the company is launching a new portfolio of Tempur-Pedic Adapt mattresses in the company’s North America segment. This next-generation technology sets the standard for support, pressure relief and motion cancellation with Tempur material precisely responding to body's weight, shape, and temperature in a way no other mattress does. This collection was designed to complement the Tempur-Pedic Breeze collection and Tempur-Ergo Smart Bases launched in 2023 and finishes the complete reset of the company’s core Tempur lineup. In its International segment in 2024, the company plans to complete the rollout of the new line of Tempur products in over 90 markets through its wholly-owned subsidiaries and third-party distributors. This new line of products will broaden Tempur's price range, with the super-premium price point ceiling maintained and the floor expanded into the premium category to expand its global addressable market. Omni-Channel Distribution The company’s primary selling channels are Wholesale and Direct. These channels align to the operating margin characteristics of the company’s business and its marketplace. The company is continuing to expand its Direct channel to strengthen its distribution footprint and provide alternatives to allow the customer to shop on their preferred terms - whether online or in-store. The company’s Direct channel includes company-owned stores, online and call centers and represented 23.9% of net sales in 2023. For consumers that prefer to purchase directly from the manufacturer and are seeking a more personalized and educational sales experience, the company has over 750 retail stores worldwide, including its retail stores owned through its international joint venture operations. As of December 31, 2023, the company had over 100 Tempur-Pedic retail stores throughout the U.S. that provide a low-pressure environment to explore the comprehensive line up of its Tempur-Pedic products. Each showroom features knowledgeable Brand Ambassadors who educate potential customers on Tempur-Pedic products in a relaxed, comfortable environment. Going forward, the company expects its strategy for opening additional locations of Tempur-Pedic retail stores to continue targeting high traffic, premium locations that complement its existing distribution. In addition to its high-end Tempur-Pedic retail stores, the company operates Sleep Outfitters, a regional bedding retailer that had over 100 stores in 2023. Sleep Outfitters is a specialty mattress retailer that serves consumers across all price points with its extensive selection of Tempur-Pedic, Sealy and Stearns & Foster products. The company also operates Dreams, which has developed a successful multi-channel sales strategy, with over 200 brick and mortar retail locations in the U.K., an industry-leading online channel, as well as manufacturing and delivery assets. The company’s third-party retailers, Tempur-Pedic retail stores, Dreams and Sleep Outfitters, and its other company-owned store concepts reach the vast majority of consumers who still prefer to touch and feel a mattress and speak to a retail sales associate prior to making a purchase decision. For customers that prefer the convenience of making purchases online and having their bedding products delivered right to their front door, the company has evolved its distribution model to include multiple online options to reach those that want to purchase its products without the need to go into a brick-and-mortar store. The company further expanded this initiative in 2022 with the opening of direct-to-consumer e-commerce platforms for Sealy and Stearns & Foster in the U.S. Marketing The company’s overall marketing strategy is to drive consumer demand through the use of effective marketing. The company invests across multiple media platforms to build brand awareness and drive consumer interest in its products. The majority of the company’s advertising programs are created on a centralized basis through its in-house marketing team. The company plans to drive net sales through continued investments in new products, marketing and other initiatives. The company advertises nationally on television, digitally and through consumer and trade print. In addition, the company participates in cooperative advertising on a shared basis with some of its retail customers. Patents, Trademarks and Licensing As of December 31, 2023, the company held hundreds of trademark registrations worldwide, which had significant value and is important to the marketing of its products to retailers and consumers. Tempur, Tempur-Pedic, Sealy, Sealy Posturpedic and Stearns & Foster are its primary trademarks registered with the U.S. Patent and Trademark Office, as are many other of its registered trademarks and pending applications. Each U.S. trademark registration is renewable indefinitely as long as the trademark remains in use. The company also owns numerous trademarks, trade names, service marks, logos and design marks in the U.S. and a number of other countries, including Dreams and SOVA. The company derives income from royalties by licensing Sealy, Stearns & Foster and Tempur brands, technology and trademarks to other manufacturers. Governmental Regulation The company’s operations are subject to international, federal, state and local consumer protection and other regulations, primarily relating to the mattress and pillow industry. These regulations vary among the states, countries and localities in which the company does business. The regulations generally impose requirements as to the proper labeling of bedding merchandise, restrictions regarding the identification of merchandise as new or otherwise, controls as to chemical and other substances, hygiene and other aspects of product safety, handling, marketing and sale and penalties for violations. The U.S. Consumer Product Safety Commission (CPSC) has adopted rules relating to fire retardancy standards for the mattress industry. Many foreign jurisdictions also regulate fire retardancy standards. The company is also subject to environmental and health and safety requirements with regard to the manufacture of its products and the conduct of its operations and facilities. The company has made and will continue to make expenditures necessary to comply with these requirements. In the U.S., the company is subject to federal, state and local laws and regulations relating to environmental health and safety, including the Federal Water Pollution Control Act, the Clean Air Act and the Resource, Conservation and Recovery Act. The company is subject to similar requirements in Canada, the EU and other jurisdictions, with further waste management and prevention, and other environmental protection regulations coming into effect both this year and over the next few years. In connection with sales of its products and operation of its business, the company collects and processes personal data from its customers and employees. As such, the company is subject to certain laws and regulations relating to IT security and personal data protection and privacy. For example, the European Union (EU) adopted the General Data Protection Regulation (GDPR). The GDPR imposed ongoing compliance requirements on companies, including the company that process personal data from citizens resident in the EU. In addition, there are country-specific data privacy laws in Europe that impose additional requirements on data controllers and several of these laws are more stringent than the GDPR. In recent years, several U.S. states have adopted legislation offering similar protections for resident citizens, such as the California Privacy Rights Act (which amends the California Consumer Privacy Act (CCPA)), the Virginia Consumer Data Protection Act, the Colorado Privacy Act, the Connecticut Data Privacy Act and the Utah Consumer Privacy Act (together the U.S. state privacy laws). Several other states have recently introduced similar state privacy laws. These U.S. state privacy laws grant consumers new rights over their personal information, such as access to and deletion of their personal information, placing strict data collection requirements on businesses, including the company’s. In the Asia-Pacific region, several data privacy laws regulate the processing of personal data of resident citizens and compliance requirements vary widely. For example, the People's Republic of China consolidated its data privacy laws into one overarching regime with the introduction of the Personal Information Protection Law (PIPL). The PIPL is widely considered one of the strictest personal data protection laws in the world, with significant restrictions placed on the transfer of personal information outside of China or use without separate citizen consent. In response, the company has implemented a global compliance system, appointed dedicated resources and have put measures in place to facilitate adherence to the continuing compliance requirements of applicable worldwide data privacy laws. Research and Development The company’s research and development expenses were $30.6 million for the year ended December 31, 2023. History The company was founded in 1846. It was incorporated under the laws of the state of Delaware in 2002. The company was formerly known as Tempur-Pedic International Inc. and changed its name to Tempur Sealy International, Inc. in 2013.