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TEMPUR + SEALY TEMPUR SEALY REPORTS RECORD THIRD QUARTER RESULTS -Net Sales Increased 20 % Compared to the Third Quarter of 2020 , Direct Sales Increased 79 % -EPS Increased 52.6 % to $ 0.87 , Adjusted EPS Increased 18.9 % to $ 0.88 -Raises 2021 Adjusted EPS Guidance Range to $ 3.20 to $ 3.30 LEXINGTON , KY , October 28 , 2021 - Tempur Sealy International , Inc. ( NYSE : TPX ) announced financial results for the third quarter ended September 30 , 2021. The Company also issued updated financial guidance for the full year 2021 that reflects the improved business performance . • • • • • THIRD QUARTER 2021 FINANCIAL SUMMARY Total net sales increased 20.0 % to $ 1,358.3 million as compared to $ 1,132.3 million in the third quarter of 2020. On a constant currency basis ( 1 ) , total net sales increased 19.2 % , with an increase of 11.9 % in the North America business segment and an increase of 71.6 % in the International business segment . ( 1 ) Gross margin was 42.5 % as compared to 46.8 % in the third quarter of 2020. Adjusted gross margin was 46.9 % in the third quarter of 2020. There were no adjustments to gross margin in the third quarter of 2021 . Operating income increased 38.6 % to $ 249.8 million as compared to $ 180.2 million in the third quarter of 2020 . Operating income in the third quarter of 2020 included $ 45.2 million of amortization for aspirational plan stock - based compensation . Adjusted operating income ( ¹ ) increased 11.0 % to $ 252.1 million as compared to $ 227.2 million in the third quarter of 2020 . Net income increased 46.1 % to $ 177.4 million as compared to $ 121.4 million in the third quarter of 2020. Adjusted net income ( ¹ ) increased 15.6 % to $ 179.6 million as compared to $ 155.4 million in the third quarter of 2020 . Earnings before interest , tax , depreciation and amortization ( " EBITDA " ) ( ¹ ) increased 5.5 % to $ 295.2 million as compared to $ 279.9 million in the third quarter of 2020. Adjusted EBITDA ( ¹ ) increased 6.6 % to $ 297.6 million as compared to $ 279.3 million in the third quarter of 2020 . Earnings per diluted share ( " EPS " ) increased 52.6 % to $ 0.87 as compared to $ 0.57 in the third quarter of 2020 . Adjusted EPS ( ¹ ) increased 18.9 % to $ 0.88 as compared to $ 0.74 in the third quarter of 2020 . ( in millions , except percentages and per common share amounts ) KEY HIGHLIGHTS Three Months Ended September 30 , 2021 Net sales Net income Adjusted net income ( 1 ) EBITDA ( 1 ) Adjusted EBITDA ( 1 ) EPS Adjusted EPS ( 1 ) September 30 , 2020 % Reported Change % Constant Currency Change ( 1 ) $ 1,358.3 $ 1,132.3 20.0 % 19.2 % $ 177.4 $ 121.4 46.1 % 44.2 % $ 179.6 $ 155.4 15.6 % 14.0 % $ 295.2 $ 279.9 5.5 % 4.3 % $ 297.6 $ 279.3 6.6 % 5.4 % $ 0.87 $ 0.57 52.6 % 50.9 % 0.88 $ 0.74 18.9 % 17.6 % Company Chairman and CEO Scott Thompson commented , " Our strong third quarter sales performance was driven by growth across all brands , products , channels and segments . Our broad - based performance is especially notable given the strong prior year comparative period and our inability to fully meet market demand in the quarter due to continued supply chain constraints . We continue to see opportunity to further grow our business and extend our lead in the design , manufacture and distribution of bedding products over the long term . Our key building blocks to future growth include the meaningful expansion of our total global addressable market via our OEM initiative and our TEMPUR international product launch , our industry - leading innovation capabilities and our balanced capital allocation philosophy . In 2022 and beyond , we expect to leverage these complementary building blocks to deliver double - digit sales and EPS growth . " ( 1 ) This is a non - GAAP financial measure . Please refer to " Non - GAAP Financial Measures and Constant Currency Information " below .