Dive Brief:
- Steve Rusing will begin serving as president of Mattress Firm on Monday, the company announced this week.
- Rusing will report to Scott Thompson, the interim CEO of Mattress Firm and the president and CEO of Somnigroup, the company said. Rusing, who has spent 30 years with Tempur Sealy, most recently served as its president of U.S. sales. He has held roles across sales leadership, product development, merchandising and retailer advertising.
- His appointment comes one month after Tempur Sealy closed its $5 billion acquisition of Mattress Firm. The company last month also changed its name to Somnigroup International.
Dive Insight:
Rusing’s appointment is the second leadership change in as many months for Somnigroup as it repositions itself for market growth, launches new products and expands wholesale distribution.
Thompson took over as interim leader last month, replacing John Eck, shortly after Tempur Sealy's Mattress Firm acquisition closed.
Somnigroup reported its fourth quarter and full year results for the first time as a unified company last month. The company’s Q4 net sales rose 3% to $1.2 billion. For the year, the company's net sales were nearly flat at $4.9 billion.
While 2024 was challenging for the industry, Thompson said during a February earnings call that the industry outlook for this year is positive. The U.S. bedding industry demand saw a high single-digit decline last year. But with new Somnigroup products currently hitting sales floors, the company is “cautious near term and optimistic long term,” Thompson said during the call.
For the full year, the company expects to recover in the second half following a first half headwind.
“We believe the market is clearly poised for growth, driven by GDP and population growth, housing turnover, and [average selling price] expansion,” Thompson said on the call. “We anticipate the market will begin to normalize in 2025 and return to some growth in the back half of the year."
Phillip Blee, an analyst with William Blair, said Somnigroup’s Q4 performance beat expectations, which, in turn, gives it a stronger incremental earnings potential.
However, Blee said Somnigroup faces some potential challenges. Beyond the addition of Mattress Firm, the company also may feel the effects of high or rising interest rates, which could affect demand for big-ticket items like mattresses.
Housing turnover, elevated promotional and pricing pressures simultaneously investing in several product and operations-related growth initiatives may also affect the business, he said.
