Tempur Sealy International, Inc. announced that during the week of January 23, 2017, senior management of Mattress Firm Holdings Corp. and representatives of its parent Steinhoff International Holdings N.V., verbally notified the company of its intent to terminate all of their contracts with the company in the united states, if the company did not agree to considerable changes to their agreements, including significant economic concessions. The company engaged in discussions to facilitate a mutually agreeable supply arrangement with Mattress Firm. However, the parties were unable to reach an agreement, and the Company issued formal termination notices for all of the Company's brands to Mattress Firm as of January 27, 2017. The company anticipates it will cease doing business with Mattress Firm during the first quarter of 2017.

The company expects to report record financial results for the fourth quarter of 2016 and for the full year. For the fourth quarter 2016, the company expects to report total net sales of approximately $770 million, a slight increase versus the prior year, GAAP net income of $61 to $63 million, and adjusted EBITDA of $135 to $138 million.

For the full year 2016, the company expects to report total net sales of approximately $3,127 million, a decrease of 1% versus the prior year, GAAP net income of $200 to $202 million, and adjusted EBITDA of $519 to $522 million. The company noted that this financial information is preliminary and is subject to among other things completion of the Company's audited financial statements for 2016.