Somnigroup reports Q3 sales growth amid acquisition and ERP disruptions

Somnigroup International reported a 10.8% increase in third-quarter sales, reaching $2.35 billion, driven largely by the inclusion of $372.6 million in net sales from the Leggett & Platt acquisition. Despite the revenue growth, the company missed Wall Street expectations for both revenue and adjusted earnings per share.

Net income fell 7.8% to $163.5 million compared to the same period in 2025. The company faced significant operational challenges within its Dreams segment, where net sales dropped 34.7% due to disruptions caused by the implementation of a new enterprise resource planning (ERP) system. CEO Scott Thompson described the technology transition as an outlier that led to lost sales and customer dissatisfaction.

Other segments also saw declines, with Mattress Firm net sales falling 5.8% and Tempur Sealy North America net sales decreasing 5.8%. Management has lowered its full-year adjusted earnings per share guidance to a midpoint of $2.90, citing persistent industry softness, cost inflation, and elevated transportation costs.