Diversified furniture components manufacturer Leggett & Platt has reported a decline in first quarter sales.
According to its Q1 2026 trading update, total sales were down 10% to $918m, with organic sales also down 5%.
Volume was down 9%, primarily from continued weak demand across most of its end markets and retailer merchandising changes in Adjustable Bed.
Adjusted EBIT was $43m, down from first quarter 2025 adjusted EBIT of $67m. Adjusted EBIT margin was 4.7%, down from 6.5%.
Within its segments, Bedding Product sales fell 7%, with volumes down 12%, primarily due to retailer merchandising changes in Adjustable Bed, volume softness in Specialty Foam, and the decision during the fourth quarter to walk away from a financially challenged customer in U.S. Spring. These declines were partially offset by higher trade rod and wire sales.
As for Furniture, Flooring & Textile Products, sales were down 7% while volumes decreased 7% due to declines in Home Furniture, Flooring, and Textiles partially offset by growth in Work Furniture.
On 13 April 2026, the Company entered into an agreement to be acquired by Somnigroup International Inc., with the transaction anticipated to close by year-end 2026, subject to customary closing conditions, including approval by Leggett & Platt’s shareholders and receipt of applicable regulatory approvals.
President and CEO Karl Glassman commented: “In aggregate, first quarter sales were in line with our expectations, and restructuring actions implemented over the past two years continued to deliver EBIT benefits, reflecting continued progress in structurally improving our earnings profile.
“At the same time, first quarter results reflected lower market demand across most of our businesses compared to the prior year, particularly in residential end markets. Demand in our domestic bedding business was lower than anticipated, as the overall health of the U.S. industry remains challenged across both manufacturers and retailers due to continued weakness in consumer activity. Market conditions were stable early in the quarter, and the President’s Day promotional period generally met expectations. As the quarter progressed, however, weather-related closures, economic uncertainty, and lower consumer sentiment driven by the war in Iran weighed on demand. As a result, we believe the U.S. mattress market declined by high single to low double digits in the first quarter.
“In addition to weak demand, our teams navigated a dynamic global environment related to the war in Iran, which drove higher transportation costs and increased transit times late in the quarter, as well as higher chemical prices that will begin to impact our costs in the second quarter. The combination of lower volume and continued cost pressures – most notably in our Furniture, Flooring & Textile Products segment – resulted in lower margins. We are mitigating these pressures through product and sourcing actions and by passing through price increases where appropriate.
“Despite these macroeconomic challenges and disruptions, we remain focused on our long-term priorities. As previously announced, we signed a merger agreement with Somnigroup, a valued long–standing customer and partner, that provides Leggett & Platt shareholders with an opportunity to participate in the future growth and value creation of a leading global company. For more than 140 years, Leggett & Platt has been defined by innovation, quality, and strong customer partnerships. We believe this combination positions us well to continue delivering compelling strategic and financial value for our customers, employees and shareholders.”
