Good day, and thank you for standing by. Welcome to the Tempur Sealy second quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Aubrey Moore, investor relations. Please go ahead. Thank you, operator. Good morning, everyone, and thank you for participating in today's call. Joining me today are Scott Thompson, Chairman, President, and CEO, and Bhaskar Rao, Executive Vice President and Chief Financial Officer. After prepared remarks, we will open the call for Q&A. This call includes forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve uncertainties, and actual results may differ materially due to a variety of factors that could adversely affect the company's business. These factors are discussed in the company's SEC filings, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, under the headings Special Note Regarding Forward-Looking Statements and Risk Factors. Any forward-looking statement speaks only as of the date on which it is made. The company undertakes no obligation to update any forward-looking statements. This morning's commentary will include non-GAAP financial information. Reconciliations of this non-GAAP financial information can be found in the accompanying press release, which is posted on the company's investor website at investor.tempursealy.com and filed with the SEC. Our comments will supplement the detailed information provided in the press release. Now, with that introduction, it's my pleasure to turn the call over to Scott. Thank you, Aubrey. Good morning, everyone, and thank you for joining us on our 2021 second quarter earnings call. I'll begin with a few highlights of our record second quarter financial performance. Bhaskar will then review our financial performance in more detail. Finally, I'll conclude with some comments on the health of the industry and our current robust order trend. With this quarter's report, the team has now grown sales and adjusted EPS by double digits for eight of the last nine quarters. Specifically for the second quarter of 2021, sales grew 76% year-over-year. More notable, sales grew a very robust 62% as compared to the second quarter of 2019, a period not impacted by the pandemic. We delivered strong performance across North America and international segments, with growth across all brands, channels, and price points. Our strong sales performance was driven by successful company initiatives, record demand for Tempur-Pedic in the U.S., and a solid industry backdrop. As a result, we generated record second-quarter adjusted EBITDA of $270 million, an increase of 147% versus the same period last year. Adjusted EPS was $0.79, an increase of 295% versus the same period last year. Second quarter GAAP EPS was up 527%. We achieved these results despite significant supply chain issues that are constraining the entire bedding industry. These issues limited our ability to fully meet strong demand for our products and are expected to continue to impact our sales potential through the third quarter of 2021. Bhaskar will discuss this point in more detail in a moment. I'd like to highlight a few items from the quarter. First, our focus on a comprehensive omni-channel strategy continues to drive growth and profitability. Our direct channel, both company-owned stores and e-commerce, had a standout performance compared to both 2020 and 2019. We saw strong foot traffic at our retail locations as more customers returned to shopping in store. We also saw an uptick in conversion and strong ASP growth. Our web sales generated strong double-digit growth, a remarkable performance considering the difficult comp from the second quarter of 2020, where our online business was up over 125% from 2019. Like our third-party retailers, our direct channel and company-owned stores also had to navigate the current quarter's supply issues, which are equally impacting all channels of distribution. Second, I want to highlight the numerous investments we're making to expand our North American manufacturing capacity to service the long-term demand outlook we see for our brands and products. As previously announced, we have selected a location in central Indiana as a site for what we expect will be the largest Tempur Sealy manufacturing facility. The first phase is planned for approximately 700,000 sq ft, with the ability to expand over time to approximately 1 million sq ft. We plan to begin construction on this site later this quarter and expect the plant will be operational in 2023. We're opening two new facilities this quarter. Our fifth Sherwood facility in the Northeast U.S. will support OEM initiatives and a new mixed-use assembly facility on the West Coast, which will support West Coast retailers and expected to shorten order-to-delivery times. As you can see, we are positioning the company for long-term organic growth. Turning to the final item I want to highlight. As previously announced, we recently executed an agreement to acquire Dreams, the U.K.'s leading bedding retailer. They operate through a successful multi-channel retail strategy comprised of over 200 brick-and-mortar locations and industry-leading digital capabilities across the U.K. In addition to their retail presence, they are vertically integrated with manufacturing and distribution assets. We're very pleased to report that we received all regulatory approvals, and the transaction is scheduled to close in early August. We expect this transaction to be immediately accretive to earnings. Mike Logue, the CEO of Dreams, will be joining the TPX Executive Team, and we are thrilled to have all of the Dreams management employees join our organization. We believe the acquisition establishes Tempur Sealy as a market share leader in the U.K. Dreams will operate on a standalone basis. They'll be reported within our direct channel, which over the last five years has grown at a compound annual growth rate of 40%. After the Dreams acquisition, our direct-to-consumer business will represent 25% of our global sales on a trailing 12-month basis, up from only 4% five years ago. Before I hand the call off to Bhaskar, let me step back for a moment and reflect on our journey over the last two years. Clearly, our sales have been and continue to be strong. We're expecting 2021 sales growth of about 60% over 2019, a period not impacted by the pandemic. I want to provide you some perspective on the key drivers of this growth. While market strength has been a tailwind for us during this period, our sales and earnings growth have been significantly higher than the overall industry and can be linked to our company initiatives. We estimate our new distribution drove approximately 50% of our two-year growth. To be clear, this is not change in balance of share on the retail floor. These are new customers. Another approximately 35% of our growth is from M&A and share gains from previously untapped addressable markets. This includes projects like expanding our direct-to-consumer and OEM businesses. That leaves approximately 15% of our two-year growth that can be attributed to the growth in the industry overall. We have clear long-term initiatives, robust free cash flow, and a solid balance sheet, which we believe position us well to deliver double-digits earnings growth in 2022 and beyond. With that, I'll turn it over to Bhaskar to walk you through the financial statements in more detail. Thank you, Scott. Before going into the details, I would like to highlight a few items as compared to the prior year. Adjusted gross margin improved 370 basis points to 44.3%. Adjusted operating margin improved 770 basis points to 19.4%. Adjusted EBITDA increased 147% to $270 million, and adjusted earnings per share increased 295% to $0.79. I would like to start by discussing the industry-wide supply chain constraints. As Scott mentioned, the record demand for our brands and products has resulted in supply chain disruptions across several categories. While the availability of certain commodities improved throughout the quarter, the availability of other key components, as well as inbound and outbound freight, worsened. We continue to turn away new North American customers and have our existing customers on allocation, including our own online and retail operations. These supply chain issues continue to impact our North American Sealy and OEM businesses, resulting in our backlog expanding and remaining elevated throughout the second quarter and into the third quarter. While our supply of these products has improved in line with our expectations, we now anticipate the record demand for our products most likely will exceed supply into the fourth quarter. Our Tempur operations had previously been largely unaffected by the supply chain constraints due to our robust inventory of finished goods and raw materials, including chemicals. The record demand for Tempur products in North America created favorable brand mix for the second quarter. However, the limitation in supply chain resulted in Tempur working down its inventory to a suboptimal level. As a result of decreased inventory and continued record demand in the third quarter, the order-to-delivery time on Tempur is temporarily extended by several weeks. We expect our North American Tempur backlog to peak in the third quarter and reduce in the fourth quarter. Across our entire North American business, we estimate sales would have been $150 million higher in the second quarter had we not experienced supply chain constraints. This is in addition to the backlog increase I just discussed. Due to these constrained sales, we do not expect the normal seasonality of our business for the back half of this year. We would expect the fourth quarter will be unusually strong as we work off a large backlog from the third quarter and hopefully take customers off allocation. We expect this variation in seasonality to result in net sales and profits being higher in the fourth quarter than in the third quarter. Based on our current outlook, we anticipate these constraints will largely be resolved by the end of the year, and we expect to be unconstrained heading into 2022. The team has also been managing a highly inflationary commodity environment. As expected, our gross margin was negatively impacted during the second quarter from the timing of price increases to retailers compared to the timing of commodity inflation. We're feeling a bit of this again in the third quarter. The good news is we have taken pricing actions in North America that will benefit the fourth quarter and beyond. While we have neutralized the dollar impact of commodities in North America through our pricing actions, our gross margin rate is impacted as sales increase with no change in profit dollars. In 2022, assuming no change in commodity costs, we expect to pick up some profit dollars and margin from our pricing actions this year as we realize the full year of new pricing. Turning to North American results. Net sales increased 75% in the second quarter. On a reported basis, the wholesale channel increased 77% and the direct channel increased 62%. North American gross profit margin improved 360 basis points to 42%. North American second quarter operating margin was a record 21.4%, an improvement of 640 basis points as compared to the prior year. These improvements were driven by the leverage as prior year was significantly impacted by COVID. International. Net sales increased 79% on a reported basis, and on a constant currency basis increased 65%. The strong sales performance internationally was broad-based across both Europe and Asia-Pac. As compared to the prior year, our international gross margin improved 440 basis points to 59.8%. International operating margin was 27.9%, an improvement of 840 basis points as compared to the prior year. These improvements were driven by leverage, as prior year was significantly impacted by COVID. Moving to the balance sheet and cash flow items. We generated a record second quarter operating cash flow of $227 million. As noted earlier, we are running very light on inventory, and I would expect that our inventory days would increase back to a normalized level by the end of the year. At the end of the second quarter, consolidated debt, less cash, was $1.5 billion, and our leverage ratio under our credit facility was 1.4x, down significantly from 2.8x at the end of the second quarter of 2020. Once we close on the Dreams acquisition, we expect our leverage ratio will be about 1.8x. For the last 12 months, we have allocated over $1 billion in capital for the acquisition of Dreams, share repurchases, and dividends. We repurchased $62 million of shares in the second quarter, bringing our total share repurchases in the first half of 2021 to $376 million. Over the last 12 months, to about $500 million. As we have stated previously, for the full year of 2021, we expect to repurchase at least 6% of shares outstanding. I'm pleased to report that our board of directors have declared a nearly 30% increase in our quarterly dividend while still maintaining a conservative payout ratio. This significant increase to our quarterly dividend demonstrates the confidence we have in our outlook, which includes the impact of the acquisition of Dreams, as well as our expanded direct-to-consumer and OEM businesses, all of which have diversified our sales and significantly improved our operating cash flow. With this backdrop, the board decided to increase the quarterly dividend, aligning it closer to the company's previously announced annual dividend payout target of 15% of net income. Going forward, we would expect the board to evaluate our quarterly dividend strategy on an annual basis. Now turning to 2021 guidance. We have updated our full year guidance to reflect our second quarter performance, the inclusion of five months of Dreams, our fourth round of pricing actions, and our updated supply chain outlook. We currently expect sales growth to exceed 35%, adjusted EPS to be between $3.10 and $3.25, a growth rate of 64% at the midpoint. This implies EBITDA to be approximately $1.1 billion at the midpoint. Lastly, I'd like to flag a few modeling items. For the full year 2021, we currently expect total CapEx to be between $150 million and $165 million. CapEx was increased to reflect the latest estimate for the previously discussed capacity expansions. D&A to be between $175 million and $185 million. Interest expense of about $55 million. A tax rate of 25%, with a diluted share count of 204 million shares. With that, I'll turn the call back over to Scott. Thank you, Bhaskar. Nice job. I want to take a few moments to discuss the health of the bedding industry and recent consumer trends. As I mentioned last quarter, we have never felt better about the bedding industry. In the past few years, it certainly has been a transformative period that created a healthier operating environment for all bedding players. This transformation has been driven by the rationalization of retail store footprints, expanding digital marketing and retail capabilities, a more customer-centric focus, anti-dumping actions curbing the sale of import mattresses into the U.S. market, bed-in-a-box startups shifting their focus towards profitability, and industry stabilization resulting from our reconciliation with the largest U.S. bedding retailer. We've seen a shift in consumer discretionary spending patterns. Over the past decade, we see that consumers have been consistently under-investing their discretionary income in home and furnishing. In the last year, consumers have invested a slightly larger portion of their discretionary income in the category. Although their spending as a percentage of their share of wallet has not returned to the pre-Great Recession levels, we expect consumer spending to continue to be strong. Before the pandemic, we were already started to see strong trends towards greater focus on health and wellness. The trend has accelerated over the past year. Consumers are increasingly connecting a good night's sleep with their overall health and are more willing to invest in a high-quality, innovative mattress that can help them achieve just that. This has resulted in strong demand, increased ASP, and a potentially shortening of the replacement cycle across the industry. We also see an overall macro consumer environment continuing to be strong. The bedding market performance has historically been positively correlated to various macroeconomic metrics. Key economic indicators such as consumer confidence, consumer spending, consumer savings, unemployment trends, and housing metrics all continue to be strong. This indicates to us that consumer spending on health and wellness will likely continue to be robust going forward. We expect that a health-conscious consumer, robust consumer spending, and a strong bedding industry will provide an attractive backdrop for us to continue our track record of growing our market share in the $50 billion global bedding market. We expect to achieve sustained long-term growth through our commitment to driving our four key initiatives. First, develop the highest quality bedding product in all the markets that we serve. Second, promote worldwide brands with compelling marketing. Third, optimize our powerful omni-channel distribution platform. Fourth, drive increased EBITDA and prudently deploy the capital. We're taking the following actions to deliver on these initiatives. We'll continue to leverage our century of knowledge and our industry-leading development capabilities by delivering award-winning products that provide breakthrough sleep solutions to consumers around the world. We have a rich legacy of delivering innovative products that resonate with consumers. For example, more than 2/3 of our second quarter sales were from products that did not exist 5 years ago. We have about 900 patents on our products and other patents pending in numerous areas. We have a robust pipeline of products currently being developed to integrate cutting-edge technologies, capabilities, and construction to continuously bring an improved sleep experience to market. These innovative products from our highly recognized brands are supported by compelling marketing designed to drive increased brand awareness and purchase intent. We have a track record of success here, and currently, our research indicates that consumers show record level of purchase intent and consideration of our products. In fact, Sealy and Tempur were ranked as number one and number two best-selling mattress brands in the U.S. by Furniture Today in 2020. Not only was Sealy able to extend its lead in the top position, but Tempur-Pedic leapfrogged two key competitors to claim the number two spot. Furniture Today also estimated that Tempur-Pedic had the greatest growth of any of the U.S. bedding producers last year. Additionally, in 2020, for the second year in a row, Tempur-Pedic ranked number one in the U.S. Mattress Satisfaction Report by J.D. Power. While we are broadly distributed with our branded product, we recognize there is one portion of the U.S. market we were not participating, the OEM market. A year ago, we began expanding our reach into the segment of the market and generated $150 million in net sales in 2020. We believe we can reach $600 million of OEM sales over the next five years as we utilize our best-in-class manufacturing and logistic capability to sell non-branded product. This will allow us to earn our fair share of the OEM bedding market, which makes up about 20% of total domestic bedding. This expansion has the added benefit of driving down our cost per unit of our branded product as we spread fixed cost and drive more advantageous supply agreements. We also have a plan in place to accelerate our market share gains in the $30 billion international retail bedding market. We plan to unlock organic sales growth through expanding the distribution of our branded product in the rapidly growing Asian market. We're broadening our international total addressable market via launch of our new line of Tempur-Pedic mattresses beginning in 2022. We're repositioning the Sealy brand in the U.K. to fulfill high-end consumer unmet needs. Lastly, we expect over time to leverage Dreams' retail core competency to drive additional international growth. We'll continue to leverage our robust cash flow and balance sheet as we prudently deploy capital. This includes making operational investments, pursuing compelling M&A opportunities, and returning capital to investors through dividends and share repurchase. Turning to ESG. I think we all know success is about more than just sales and profit. I'd like to take a moment and highlight a few of our recent ESG initiatives. These ongoing initiatives reflect our commitment to our community and environment. During the quarter, Tempur Sealy Foundation contributed its largest gift to date in the form of a $2 million donation to support the establishment of the Tempur Sealy Pediatric Sleep Center at the Kentucky Children's Hospital, located in Lexington, Kentucky, the home of our global headquarters. During the quarter, we also made progress toward our goal toward achieving carbon neutrality for our global operations. I'm happy to share that we have completed the installation of solar panels at our largest manufacturing facility in Albuquerque, New Mexico. These panels will generate enough clean energy to power all of its mattress assembly lines. Additionally, we have recently approved the installation of solar panels at our European Tempur manufacturing facility. Before turning the call over for Q&A, I'll briefly comment on current order trends. As Bhaskar indicated, demand for our brand and products remain robust. In fact, we are seeing third quarter order trends up about 20% year-over-year, with Tempur North America especially robust. This robust demand for our brand and products give us confidence in our ability to continue to deliver strong growth in the future. With that, operator, will you please open the call up for questions? As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. We ask that you please limit yourselves to one question. Please stand by while we compile the Q&A roster. Our first question comes from the line of Curtis Nagle from Bank of America. Your line is now open. Good morning, guys. Thank you very much for taking my question. Following up on your comments, Scott, on the quarter, demand is awesome, right? Clearly, the model's in fantastic shape. Could you guys provide just a little more detail in terms of the actual, I guess, expected sales growth for 3Q and 4 Q? A lot of moving pieces here. Just kind of one of those instances, at least I think, where I think we could just use a little bit more hand-holding in terms of the model, just so we can kind of get, I guess, our expectations right. Sure. Good morning, and I always appreciate the opportunity to hold your hand. Thank you for the question. Look, the second quarter, as you described, was either awesome or outstanding or whatever terminology you want to use. Clearly, it was over our expectations. Tempur in North America was especially strong in the second quarter. As you know, we build to inventory, and the retailers successfully depleted our inventory to a level that was suboptimal, I think is the term we used. When you go into the third quarter, although the orders are very robust, and that was what I was pointing out at the end of the prepared remarks, the inventory that we take into the third quarter in North America with Tempur is somewhat lower than we normally would. That's going to create some backlog issues in Tempur at the end of the third quarter. That particular issue creates some unnatural seasonality, and I think that's what Bhaskar was pointing out in his area. The orders are up 20% worldwide so far this quarter, North America stronger in Tempur specifically. Some of what would be natural third quarter business is going to move into the fourth quarter. Then I think we've given you some guidance on the full year. That'd be the first thing I would tell you. The second thing I would point out that we pointed out in the prepared remarks is, you remember last year, Sealy was highly constrained due to the spring shortage that we were dealing with, quite frankly, worldwide, but specifically in North America. We had unusually rich brand mix. This year, the springs are in great shape. In fact, there's plenty of springs around the world and in North America, and there won't be any constraint on springs, and there will be some constraint on the foam issue. We'd expect, during the third quarter, to work off some of the Sealy backlog that we're taking into the quarter. We expect, hopefully, all of the issues related to the supply chain to clean up during the fourth quarter. That's a naturally lower volume quarter for us. Plus, we see good trends both in chemicals and other component issues. We think we clean it up and we go into 2022 unconstrained. Hopefully, that helps some. Thank you. Our next question comes from the line of Seth Basham from Wedbush Securities. Your line is now open. Good morning. Good morning. My question also revolves around the near term, just making sure that we have the right visibility and confidence that we'll be able to see this backlog resolve in the fourth quarter. Is there any evidence that you can share with us that leads you to believe that you'll be able to get through this backlog in the fourth quarter? Sure. First, the natural seasonality is certainly a good guide for us when you're talking about that. We have, as I think you know, the biggest issue right now is chemicals, and that's a domestic issue. That is not a worldwide issue. It's a chemical issue here domestically. Everybody, including us, have ordered chemicals from overseas. Those chemicals are on the water. In some cases, they're in the port. We've got good visibility as to solving the chemical problem, more than just relying on the domestic manufacturers. That's going to take some time, and I'm sure you know from your other customers or clients, the logistics in the world aren't quite as crisp as they normally are. We are dealing with a little bit of a logistics issue there. You're talking about months, not quarters, to probably get some of those chemicals onshore and take some of the pressure off that particular situation. Thank you. Our next question comes from the line of Peter Keith from Piper Sandler. Your line is now open. Hey, good morning. Great results, guys. I'm going to ask, and break the rules a bit, two questions. To Curtis' question, just with the Q3, Q4, I guess my concern is we could model revenues too high in Q3 if you're having a delay with the timing of Labor Day. It seems like sales could shift out of Q3 into Q4. Any concern or quantification there? Separately, what is the total size of the backlog for the back half of the year that you expect to work down? Sure. Let me see if I can help with that, and then maybe Bhaskar can even give you some more detail. Look, this is an imprecise science, and we're doing some guessing. If I were guessing today, I would guess that. Think of Tempur as having relatively no or limited backlog going into the third quarter. I think exiting third quarter, you should think about probably a backlog of Tempur of about $100 million. Right. It would then move into the fourth quarter. When you talk about total sales for the third quarter, we don't really give up, we don't really talk in quarters. You would expect the sales to be more in the third quarter than the second quarter. You'd say growth. Correct. Growth. It's going to be muted by that Tempur backlog. The other thing I'd point out that we pointed out in the script that I want to be very clear, in addition to the backlog, as we talked about in the second quarter, we have major customers on allocation. Getting a little hot and itchy, as a matter of fact. We probably at least deferred $150 million of sales in the second quarter. When you really look at the demand, this is a big demand problem we're working through. We have customers in the third quarter are continued on allocation, and hopefully when we get to the fourth quarter, we're expecting that we'll be taking customers off of allocation and get more to a normal flow. Bhaskar, anything you think would help them, their model? I think another way to think about it, Peter, is think about our two-year stack that we quoted in the second quarter. We came in and around what we thought at about 62%, the implied 35% in excess of 35%. A way to do that, if you think about the rest of the year, it's going to get you something a little bit north of that 62%, so an acceleration. Think about more of that in the fourth quarter than in the third quarter. As Scott mentioned, we do think that about $100 million of backlog will flip in the fourth quarter. Hopefully that will assist. Bhaskar, I'm glad you brought up that 62%, because quite frankly, of all the numbers, maybe other than EPS, that I was pleased with is when you look at the two-year stack, it's a 62% increase. There's going to be a lot of companies that have a big eye-popping growth because you got an easy compare last year because of the pandemic. The number that really makes me feel good about the team is the two-year stack at 62%. Thank you. Our next question comes from the line of Atul Maheswari from UBS. Your line is now open. Good morning. Thanks a lot for taking my questions. Scott, in the press release, you highlighted that 15% of your revenue growth over the last two years was driven by the strong market backdrop. I know you're expecting that the market's going to be fairly good going forward, but to the extent that current trends do reverse and you kind of see some pressure going forward, what avenues do you have to offset this market pressure and still meet consensus expectations of mid to high single-digit growth for the next few years? Thank you. Sure. I think first thing, let me point out the reason I kind of dissected our growth, it's my perception that most people think the industry is more robust than the actual industry is. You see public company sales numbers. The public companies that you see are taking share, and some of the private companies are donating share. I don't think the industry has actually realized the growth rate that most investors think, because the industry's been constrained, and I don't think we've been pulling forward sales. I think we've been pushing off sales. That was the main reason I kind of dissected it. The foundation of your question is, it's like a booming market, and what happens when it's not a booming market? I'm going to push it back a little bit, and I don't think it's been that big a booming market because we haven't been able to build the beds as an industry. Okay? The second point is, okay, so it does slow down a little bit. We've got lots of drivers. When you look at our direct business, if you look at the web business alone in the second quarter, even though it had triple-digit growth last year, we had double-digit growth on top of that. We're doing great on the web business. We've got our own stores. We've got expansion in our Tempur stores, flagship stores. We've got expansion in Sleep Outfitters. We've got new initiative in Europe and all over international in Tempur as we go forward in larger addressable market with the Tempur product. Asia, I think your question is mainly focused on the U.S., but Asia's continued to grow. Even if it slows back down to what would be normal trend, it looks like to me we've got good growth at the top line, but we also got a lot of opportunity on the bottom line. Look, this disruption from a component standpoint has meant the plants run floppy. Bhaskar called that out at several quarters, and I'm going to call it $5 million-$10 million a quarter, quote, "sloppy" because of the supply chain. We've got significant free cash flow that we've got to invest somewhere, whether that be in share buyback or whether that be in highly accretive acquisition, I'm not sure yet, but it's certainly got to be invested in somewhere because we've got our debt leverage paid down to what? 1.4x at the end of the quarter. 1.8x after Dreams. We've got a very accretive acquisition that gets layered into next year, and we get the full benefit of pricing increases that we took this year, we'll get the full benefit next year. It looks like it's good sailing, I'm going to say, for quite a while. Again, I think the main point I want to make is the foundation that sales overall in the industry are extremely robust. I think orders and demand is very robust, but I actually think the industry sales are lower than some people perceive. Right. Let me just do that math. It's 15% of the growth that would equate to about 5%. If you just think about the industry over the last 20 years, 30 years, that's not far off round. Yeah, I guess I forgot to mention we have customers on allocation. Correct. We're not accepting new customers. I guess all of that combined, although we haven't done our budgeting for next year yet, I think we're going into the budget season feeling good about next year. Good. Thank you. Our next question comes from the line of Jenna Giannelli from Goldman Sachs. Your line is now open. Hi there. Thanks for taking my question. I guess the first one is really just on the backlog with some of the customers on allocation and potentially having to turn some new ones away. I guess a few things, has that put any sort of pressure on the relationships or satisfaction, or is it understood that this is just a general industry headwind? Also, I guess is there a risk that they potentially go elsewhere to get product? Then just finally, has there been any resistance to increases in pricing? Thanks so much. Okay. Very articulately got 12 questions in on one, I'm going to try to remember them. Bhaskar writing very quickly. Yeah, first of all, this is an industry issue. It's not a company specific issue. It's an industry issue as far as constraint. I think everybody understands that. Not only is it just a bedding industry issue, I think we all know whether you try to order a car, or if you try to order furniture, or you try to order a boat, or whether you try to order anything, right now the world's a little different. Not that people are particularly wonderfully happy about having to wait, I do think that helps, and we're not seeing any issues both in our own stores or with retail as far as from cancellation. As long as you can tell a customer when they're going to get their product, hold the delivery time and communicate with them, no issues. From that standpoint. Put pressure on relationships, yeah, sure. I'm going to say I have some customers that aren't happy because they think they could sell more, and they probably could if we could build more faster. It kind of comes with the territory. One thing we're doing is we're treating all channels the same. You could argue that if you just wanted to optimize our EPS for this quarter or last quarter, anything else, we would benefit our direct channel over the other channels. We're not doing that. We're constraining our direct business in the same way that we are constraining the rest of the channel. We're treating everybody what we believe is fairly. Again, we also see an end to this, and it's a relatively short period of time. We, as a company, are disappointed that we're not able to deliver as quickly as we have in the past. Do you think any pushback on price? On the price, glad you asked. Look, over the last 12 months or so, the industry has pushed more pricing through the system than it ever has in the history of bedding by a large amount. The pricing has gone through crisply. Industry has accepted it, and quite frankly, customers have accepted it. For us, we push pricing through, we don't put margin on it, our sales go up, but our gross profit percentage can go down. It can put some pressure on the percentage, but it offsets the cost. For the retailer, quite frankly, to the extent customers accept the pricing, there's margin in there, and it's been good for the retailers that the pricing moved through the system. Again, the whole industry moved it based in commodities and no resistance, and I don't see any resistance if, quite frankly, if the commodities go up again, if we have to push pricing again. Right now, it feels like we've probably done enough domestically, might have to do some more internationally, seeing how things go. Thank you. As a reminder to ask a question, you will need to press. Pardon me. Our next question comes from the line of Bobby Griffin from Raymond James. Your line is now open. Good morning, everybody. Hey. I'd like to switch the conversation to international a little bit. Scott or Bhaskar, can you give us maybe an update on the 2022 launch? Has any of the supply chain issues maybe impacted that? I guess more importantly, now that you own Dreams by then, how does Dreams come into play for the big international launch and any potential benefits you see there that might not have been visible before you acquired Dreams? Sure. The launch and the products and development are in great shape. It's tracking to plan. As I mentioned before, the biggest chemical issue and constraints are really domestically, not internationally. We're not having any significant issues internationally relative to the constraint. The little pandemic's a little bit more challenging, getting people together and that kind of stuff, but we're working through that. Right now, I'd tell you the large international launch is on plan, on time, on budget, everything. You ask about how does Dreams kind of fit into that? Let's talk about Dreams for a minute. Dreams, it's a retail. It's going to be run standalone. Certainly, it helps, and we'll get a very focused Dreams on the new product. I think that for them to be successful, they have to decide what their merchandising plan is, and they'll decide that. We're expecting big things from that launch, and quite frankly, we're expecting big things from Dreams. Although nobody asked, I guess I can tell you that the U.K. bedding market in Dreams is performing very well, even though we haven't quite closed it yet. I think that acquisition gives us a skill set that we didn't have before. I think over time, and we're talking years, I think that that will be a good foundation for growth internationally. Thank you. Our next question comes from the line of Jonathan Matuszewski from Jefferies. Your line is now open. Great. Thanks for taking my question and nice results. Thank you. I just had a question around some of your key retail distribution partners. It seems like they're revamping their own marketing campaigns recently around the importance of sleep. You see it on a national basis across advertising mediums. Curious how much you think this kind of raises awareness and how it could benefit industry sales in the back half and beyond. Thanks. Sure. I'm not going to talk about any individual customer, but it's a great question. I'm going to kind of step back because it's more than just really this quarter. If you look at the quality of the industry's advertising, both in content and how they go to market, whether it be online, it has improved. Our major customers have really done an outstanding job in the marketing department. I think that that is part of the underlying demand that the whole industry's linked. I continue to be impressed by the major retailers' new ad campaigns. More professional, more customer-focused. I guess I could really just not just go through the advertising. The industry in total, and especially the large customers, have become so much more focused on the customer experience, customer service that I couldn't be prouder of our large customers and the way they have pivoted over the last five years from a go-to-market standpoint. Thank you. Our next question comes from the line of Carla Casella from JP Morgan. Your line is now open. Hi. I have two questions I'm going to wrap in here. I'm wondering if you think that the supply chain disruption, you've picked up any sales actually from that from competitors who may have had even greater supply chain disruption. You mentioned your order to delivery times. Can you just give a sense of where they are in terms of the best and the worst markets today? Sure. To put in the context of the expansion you're doing on the West Coast. Sure. From a supply chain standpoint, I don't know, it's pretty hard to I don't think we picked up any particular share relative supply chain. Here's the challenge, because we've been growing so much faster than everybody else, we have great relationships with our suppliers, but we have to get more components, not just what we got last year. Some of our competitors who are not growing, or not growing very fast, their challenges might have been less because they're not asking for more components, if that makes sense to you. As I said, we're up 62% on a two-year stack, we're having to go out and get more components. I'm going to say, on total, we're probably, it was neutral from a market share standpoint. As far as order to delivery, got to do it by brand. I'm going to say normally Sealy order to delivery, three days? Yes. Bhaskar, give or take. Yes. In a normal world, order delivery three days if it's a Sealy product, and we're probably how many weeks out, you think, in Sealy now? A few. Yeah. Three? Three to four. Yeah. Yeah. I'll call it three to four. It's going to vary by product, by plant, kind of thing. That kind of gives you an idea. Tempur is built to inventory, so it's in inventory in DCs all over the United States. That is normally, you just order it, and you're going to get it. Within a week. Yeah, within a week. Probably some of our large retailers have obviously their own DC. Now Tempur's probably three, four weeks? Yes. Three or four weeks out? Yes. Again, depending on product and location. We think the Sealy backlog might come down a little bit in the third quarter but still be there. Tempur backlog should probably peak at the end of the third quarter. We should be able to work it all off hopefully in the fourth quarter and unconstrain our customers. Thank you. Our next question comes from the line of Bradley Thomas from KeyBanc. Your line is now open. Hi. Thanks for taking my question. Congrats on a great quarter here. Thank you. Question for Scott and Bhaskar each, if I could. Scott, you mentioned the 20% growth in orders that you're seeing. I wonder if you could maybe speak to some of the data points you're getting from your own direct business, just to make sure we're pulling out any extra orders that you're seeing maybe as retailers are trying to fill inventories. Bhaskar, I was hoping you could just talk a little bit about your latest expectations for raw material impact on EBITDA through the balance of the year and for the year on the whole. Thanks. Sure. Yeah. The number I gave you is what I'll call a clean number for orders. We don't let retailers quote order up or buy up or do things like that to try to kind of game the system. That would be a solid worldwide order number. Correct. I would tell you North America is stronger, and then within North America, I would say Tempur is really strong. That's right. As it relates to raw material, if I just go backwards a bit, in the second quarter, we had an expectation about what we would see, let's call that $20 million-$25 million. We did anticipate, at that time, that some of that would dissipate as we get into the back half. Good news, bad news. Bad news is that sitting here today, is that that did not happen. However, as part of the contemplation during the second quarter is that we did indicate if pricing was more sustained or inflation was more sustained, we'd put in a price increase. We have done that. The price increase does go, and it's our fourth round. It will go into place in the third quarter. We haven't specifically talked about the size of raw materials. However, what I would say to that is that it is significant, and because of the strength of our brands and products, what we have been able to do is we have put in pricing that fully offsets all of the pricing, the inflation that we see and the anticipated inflation that we see for the balance of the year. As you think about 2022, as Scott said, is that we will get the wraparound effect. Pricing will be a help or a tailwind as we get into 2022 and beyond. Thank you. Our next question comes from the line of Judy Merrick from Truist. Your line is now open. Okay, thank you. This is Judy in for Keith Hughes. Most of our questions have been asked, but just to follow up on the international question on the Dreams. Hasn't changed anything about your Tempur-Pedic rollout next year, in Europe, either the pace or how you're going to do that. Is that right? That's correct. Dreams is already an outstanding customer of ours. I don't think it really changes much for the Tempur rollout. Where there is some possibly incremental opportunity is on the Sealy side. They're not a big Sealy retailer at this point. We just recently acquired our Sealy rights back. We'll work through that over the next year and see what the opportunity is for the Sealy brand on the Dreams [floor]. From a Tempur standpoint, they're great Tempur customers already. Thank you. Our next question comes from the line of Bob Drbul from Guggenheim. Your line is now open. Hey, good morning. Just a quick question. Following on the discussion around advertising or marketing, when you think about sort of the strong demand that you're seeing and some of the supply chain challenges, how are you guys managing your own advertising investments and marketing expenses, and I guess the plans for the remainder of the year? That would be helpful. Thanks. Yeah, no, a very astute question. Look, we could manage the business and optimize earnings per share, and maybe that's what we should do, maybe there's some people who think that's what we should do, but that is not what we're doing, okay. Even though the demand is great, we are not trying to optimize EPS for a particular quarter. This is going to be the biggest year of advertising in the history of the company. We have not pulled back on our advertising during this period because we think advertising's brand building for the long term, and we're setting ourselves up for next year in 2022, especially over in Europe. Look, we debate it internally. You wonder, like, okay, should you try to optimize. No, we look at it as a long-term commitment. Our retailers expect us to be in the market to continue to drive business. We're not really turning on and turning off advertising, trying to manage it. We're committed to the brand. The good news is, when we do our brand tracker and we look at customer intent, we continue to see building strength in our brands relative to other people in the market. We think this long-term consistent commitment to drive advertising and marketing is the right for the long term. That's what we're doing, and it's an interesting question that we debated several times this year within the group. We're in it for the long term. Thank you. The allocated time for questions has come to an end. I would like to turn the call back over to Scott Thompson for closing remarks. Thank you, operator. To the over 9,000 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 its board of directors. This ends the call today. Thank you, operator. This concludes today's conference call. Thank you for participating. You may now disconnect.