E-commerce has reshaped the retail landscape, and the mattress industry is no exception. However, this space has been hit especially hard in recent years as demand for mattresses has weakened, and economic uncertainty has put downward pressure on sales.
There have also been a few well-publicized examples of companies that have failed to keep pace with the changing shifts in the mattress industry, particularly the shift from brick-and-mortar to online sales.
One notable example is top retailer Mattress Firm, which was acquired by scandal-ridden Steinhoff International in 2016 for a premium price of $3.8 billion and subsequently tucked in hundreds of stores for a permanent goodnight. Steinhoff International was caught up in one of the largest cases of corporate fraud in the history of South Africa.
After being acquired by Steinhoff, Mattress Firm also experienced significant financial troubles and ultimately filed for bankruptcy in 2018. In October 2023, Steinhoff International was liquidated, with the company and its shares ceasing to exist and control of the entity ceding to its creditors.
Steinhoff also sold its stake in Mattress Firm to Tempur Sealy, a mattress and bedding product giant, in 2023. While regulators initially blocked the deal, it eventually closed in February 2025. Following the deal's finalization, Tempur Sealy changed its name to Somnigroup International (NYSE:SGI), with the business entities Dreams, Tempur Sealy, and Mattress Firm now all part of its family of brands.
While Mattress Firm is a dramatic example, sharp corrections in the mattress industry amid the changing landscape of consumer spending have paved the way for a new breed of direct-to-consumer, bed-in-a-box manufacturers. Several have made their publicly traded debut in recent years.
Online shopping and demand for upgraded sleeping comfort are on the rise, but the trajectory of consumer spending may take time to recover. Still, a select few mattress stocks might be a worthy investment right now.
Top stocks
Top mattress stocks to consider in 2025
The mattress industry falls under the consumer discretionary sector of the stock market, so it's prone to business cycles based on consumer spending on items not considered everyday basic staples.
This industry has been experiencing weaknesses and is facing numerous challenges. These include declining demand, rising customer acquisition costs, and concerns about the housing market and overall inflation dampening consumer spending behaviors.
If you want to invest in this space, there are multiple ways to get investment exposure to the mattress industry. For example, investing in consumer discretionary retailers such as Wayfair (W 0.8%) yields some exposure to bedding sales. For a more mattress-focused investment, check out these three stocks:
| Company name | Company ticker | Market cap | Industry |
|---|---|---|---|
| Sleep Number | NASDAQ:SNBR | $216 million | Specialty Retail |
| Leggett & Platt | NYSE:LEG | $1 billion | Household Durables |
| Somnigroup International | NYSE:TPX | $14 billion | Household Durables |
1. Sleep Number
1. Sleep Number
Sleep Number is a well-established player in the mattress industry. Its long-running TV commercials have been touting the benefits of its adjustable sleep systems for years, and the company has a longtime presence in both retail stores and online.
Sleep Number, as a growth story, has dealt with fluctuating revenue and profitability recently. While it has been working to shave its net losses, the company continues to face declines in core metrics, including sales. Recent improvements to its gross margins and adjusted earnings before taxes, interest, depreciation, and amortization (EBITDA) still haven't been enough to offset the overall decline in sales.
The stock trades at a value, reflecting the crowded mattress industry in which Sleep Number operates and the volatile nature of consumer spending on higher-end discretionary items.
2. Leggett & Platt
2. Leggett & Platt
Leggett & Platt isn't a mattress and bedding manufacturer but designs components used in bedding, furniture, and other specialty seating (for example, in the auto industry). Manufacturing everything from springs to foam, Leggett & Platt plays an integral role in helping us get a good night's sleep.
This is no high-growth firm, and as an industrial products producer, its commoditized manufacturing business generates low single-digit profit margins. Nevertheless, if you're looking for a dividend income-generating mattress investment that won't keep you up at night, Leggett & Platt might be the stock for you.
3. Somnigroup
3. Somnigroup International
Somnigroup International was formed through a series of strategic acquisitions and a name change, evolving from Tempur Sealy International. The company's core is built on Tempur-Pedic International's 2012 acquisition of Sealy Corporation.
Further expansion came with the recent acquisition of Mattress Firm. The name change to Somnigroup International reflects the company's expanded vision and global presence, emphasizing its integrated omnichannel strategy and commitment to providing diverse sleep solutions.
The company doles out a small quarterly payout, which it initiated in early 2021, and also repurchases shares. It has a consistent track record of growing revenue, cash flow, and operating income despite currently operating at a net loss. It also regularly increases its dividend payout.
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Sleep on it before investing
Overall, the mattress industry is not a high-growth space. However, e-commerce has prompted changes in business models and allowed a number of smaller upstarts to move in on the older firms that have long been hogging the bed. Just bear in mind that as part of the consumer discretionary sector, mattress stocks can be volatile. Make any investment a very small percentage of your overall portfolio.
