Somnigroup International Inc. (SGI) shares plummeted 6.58% intraday on Thursday after the bedding company reported second-quarter sales that fell short of analyst expectations and slashed its full-year earnings outlook.

The company posted adjusted earnings of $0.58 per share, in line with consensus estimates, but net sales of $1.823 billion missed the $1.882 billion analyst forecast. The sales decline was partly attributed to store closures at its Mattress Firm segment, which saw net sales decrease 2.8% year-over-year, while Tempur Sealy North America sales also declined amid challenging market conditions.

More significantly, Somnigroup revised its full-year 2026 adjusted EPS guidance to a range of $2.85 to $3.15, down from its prior outlook of $3.00 to $3.40. The new guidance midpoint of $3.00 fell below the FactSet consensus estimate of $3.14, further rattling investor confidence and triggering the sharp sell-off.