Tempur Sealy International, Inc.

Diane, thank you for standing by. Welcome to Tempur-Sealy's third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Aubrey Moore, Vice President, Investor Relicensed. 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. 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. Any forward-looking statement speaks only as of the date on which it was made. The company undertakes no obligations to update any forward-looking statements. This morning's commentary will include non-GAAP financial information. Reconciliations of the non-GAAP financial information can be found in the accompanying press release, which is posted on the company's investor website at investor.tempersealy.com and filed with the SEC. Our comments will supplement the detailed information provided in the press release. And now, with that introduction, it's my pleasure to turn the call over to Scott.

Thanks, Aubrey. Good morning, everyone, and thank you for joining us on our 2023 third quarter earnings call. I'll start by sharing some highlights from our third quarter performance, and then Bhaskar will review our financial performance in more detail. After that, I will provide an update on a proposed acquisition of Mattressfront before opening up the call for Q&A. Today, we are reporting the third best third quarter sales and EPS in the company's history. For the third quarter of 2023, we reported net sales of approximately 1.3 billion and adjusted EPS of 77 cents. Our results are approximately consistent with the third quarter of last year, despite a more challenging macroeconomic operating background. The U.S. betting industry as a whole underperformed our expectations. with estimated volume down low double digits in the quarter. We mitigated the impact of the softer than expected US market with solid company performance that exceeded our expectations on both a relative market performance and year-over-year gross margin expansion. Internationally, the betting industry and our operations performed in line with our expectations. Overall, despite down markets, and the disruption of a major cybersecurity incident in the third quarter, our strong relative performance and cash flow generation demonstrate the strong strength of our brands, operations, and team. We believe Tempur-Sealy is well positioned for continued success.