Thank you, Aubrey. Good morning and thank you for joining us on our third quarter 2024 earnings call. I will begin with some highlights from the quarter and then turn the call over to Bhaskar Rao to review the financial performance in more detail. After that, I will provide some comments on our proposed acquisition of Mattress Firm and then open up the call for Q&A.
From the third quarter, net sales grew 2% to $1.3 billion and adjusted EBITDA grew a solid 6% to $275 million compared to the same period last year. Our GAAP EPS grew 14% to $0.73 per share and adjusted EPS grew 7% $0.82 per share compared to the same period last year. The overall bedding industry remains significantly below historical volumes.
However, we are pleased with the Tempur Sealy's results in the third quarter with an outstanding international performance and solid domestic results. Adjusted EBITDA to net debt leverage ratio declined to 2.4 times, which is below our midpoint of our targeted range of two to three times.
As we have reported previously, we are preparing our financial position for the planned closing of the Mattress Firm transaction. Cash generation in the quarter was very strong despite the soft market, and we delivered $240 million in free cash flow. Our strongest quarter in the free cash flow for the third quarter of 2021.
Turning to the third quarter highlights. Our first highlight is our adjusted EBITDA margin of 21.1% in Q3, which is the strongest margin in 10 quarters, driven by our consolidated growth coupled with our operating efficiency initiatives in diverse business platform. We continue to invest in brand through advertising and best in class service levels, while also remaining agile and responsive to industry conditions.
We expect to see significant upside once the market normalizes, which we estimate to be in 2025 to be led by the new Sealy Posturepedic product launch, which I will discuss in a minute. Turning to our second highlight our US business continues to perform well compared to the broader market, driven by the continued success of our newly launched products and recent distribution events.
We recently completed the full refresh of our temp repeated brands, starting with the new generation of Breeze products and smart bases launched in 2023, followed by the 2024 rollout of our updated data collection and active Breeze pillow product. These newer generation products featuring a broad range of innovative solutions such as industry-leading cooling technology, advanced pressure release and AI driven the insights that help consumers overcome common barriers to quality sleep.
Our ongoing commitment to investment in consumer centric innovation is clearly delivering returns as we see a growing trend with consumers attaching a smart base to their mattress purchases, which is driving an increase in average transaction value for both our retail partners and our direct-to-consumer business.
Additional, our sleep tracker AI app continues to enhance our product value by offering users real-time personalized [potency] helping achieve better sleep. We are particularly pleased to report to app downloads reached a record level in both August and September, demonstrating strong consumer engagement and interest in our innovative solutions.
These results prove that our products are resonating with premium health and wellness focused customers. During the past year was our strongest performing brand in the quarter and delivered solid growth through both wholesale and direct to consumer channels, driven by last year's new product launch, our rapidly expanding e-commerce platform and our ongoing investments in advertising.
Our value products also performed relatively well in a challenging demand environment, even by recent distribution wins in two large US bedding retailers. Turning to our third highlight, we are excited to share that will be launching our own the collection of US products path with 2025. This is a significant reimagining the Posturepedic product, branding, and marketing as we work to make it grow in the US bedding market with Sealy is the largest brand.
This new product line is targeted at the mid the entry-level market for industry volumes have been weak for the last few years. This updated Sealy Posturepedic collection of mattresses is result of a multiyear R&D cycle and will feature new proprietary coil technology, patent pending proceedings fit coils which is designed in-house by our engineers to provide superior support, which has been the common thread of Posturepedic collection since its inception in 1950.
We've also simplified merchandise and provide a clear value proposition and more compelling stepped-up story. The update will feature a new look thoughtfully designed to operate fresh start while staying connected Sealy brand legacy. The launch will be supported with a national advertising campaign beginning Memorial Day 2025.
The advertising is designed to reinforce the Sealy Posturepedic difference, is top of the funnel multimedia campaign will be a national advertising effort to drive excitement for the company's largest brand. Our messaging will be amplified, planned all new Sealy Posturepedic in-store experience, and we plan to elevate Sealy's brick-and-mortar presence with updated in-store material and training.
We're continuing to make high return investments in brand and product to drive our and our third-party retailer's success. Shifting to international for our fourth highlight, both our legacy international business and our dreams operations performed very well in the third quarter, driving healthy double-digit growth in international sales and 200 basis points of expansion in international operating margins, representing significant momentum relative to the overall subdued in international markets.
Our newly launched international temper collection of mattresses, bed bases and pillows, continuing to drive growth and market outperformance across key markets like the UK, Germany, China and Australia. Notably, since the collection launched last year, we expanded our wholesale distribution by more than 10% and see continued opportunities to broaden distribution over the long term for supporting our new international products to strategic investments in advertising, our continued investments throughout the funnel ensures that we drive both brand awareness and conversion, seeding the market for sustainable long-term growth.
As a highlight for the quarter, our US Tempur-Pedic brand was recently awarded the number one in customer satisfaction in both the in-store retail mattress and the online mattress segment of J.D. Power's 2024 Mattress Satisfaction port. It is honoured to achieve this distinction for the last five added six years for the retail category and for the fourth quarter decorative year and the online category.
These recognitions keep repeated and has been named the most awarded brand in the history of the J.D. Power US mattress satisfactions steady. This recognition is a testament to our consumer-centric innovation and unwavering commitment to product quality and service. And with that, I will turn the call over to Bhaskar.
Thank you, Scott. In the third quarter of 2024, consolidated sales were $1.3 billion and adjusted earnings per share was $0.82. There are approximately $22 million of pro forma adjustments in the quarter, all of which are consistent with the terms of our senior credit facility. These adjustments are primarily related to costs incurred in connection with our planned acquisition, Mattress Firm, and manufacturing footprint optimization initiatives.
The manufacturing optimization involve the closing of two small facilities as we transferred their volume into our full-service manufacturing plants. This shift will allow us to lower our future cost per manufactured unit while continuing to make product to our industry leading quality standards.
Turning to North American results, net sales to both our wholesale and direct channel declined approximately 1% in the third quarter. North American adjusted gross margin declined 10 basis points to 43.1%, driven by the mix impact of the new distribution wins for OEM business, partially offset by commodity costs and operational efficiencies. North American adjusted operating margin declined 20 basis points to 20.1%, driven by the decline in gross margin and operating expense deleverage.
Now turning to international results. International net sales grew a robust 12% on a reported basis and 11% on a constant currency basis. As compared to the same period last year. Our international gross margin improved 70 basis points to 57.3%, driven by operational efficiencies.
Our International adjusted operating margin improved 200 basis points to 18.2%, driven by operating expense leverage and the improvement in gross margin, partially offset by the Asia joint venture performance. We are pleased to share that our Asian joint venture recently opened our first manufacturing plant in India. Although not expected to be material to our operations in the near term, it is further evidence of the long-term vision and willingness to invest in the future.
Now moving to the balance sheet and cash flow item. At the end of the third quarter, consolidated debt less cash was $2.2 billion. And as Scott mentioned, our leverage ratio under our credit facility was 2.4 times within our historical target range of two to three times. As previously announced, we have executed a $1.6 billion term loan B. We are now positioned to fully fund the Mattress Firm acquisition at close. Now turning to 2024 guidance, we have narrowed our adjusted EPS outlook to be between $2.45 and $2.55 at the midpoint of the range this represents a 4% growth year over year, a notable expansion of profitability in a prolonged challenged market.
Our guidance at the midpoint is based on the full year sales that are slightly below the prior year, which implies the fourth quarter will it be approximately consistent to the prior year. This also considers our current expectation that to 2024 US bedding industry unit volumes will be down high single digits, which implies the industry will be down approximately mid-single digits on dollars in the fourth quarter, consistent with what we saw in the third quarter. This represents more than a 30% decline from peak mattress unit demand in 2021.
Our sales outperforming the global industry due to recent distribution wins and the continued success of new product launches with advertising brand approaching $465 million or so as we support our leading brands and new products, resulting in adjusted EBITDA of approximately $915 million at the midpoint of the rage. Our guidance also considers the following allocations of capital in 2024. CapEx of approximately $125 billion, down significantly from prior years as our major capital projects are complete. This level of spend is primarily driven by maintenance CapEx of $110 million in a quarterly dividend of $0.13, an increase of 18% over prior year.
Lastly, I would like to flag the modelling items, for the full year 2024, we expect D&A of approximately $200 million to $205 million, interest expense of approximately $125 million to $130 million on a tax rate of 24% with a diluted share count of 179 million shares. With that, I will turn the call back to Scott.
Scott L. Thompson
Best job Bhaskar, I would like to take a moment to share some updates related to our mattress on acquisitions. First, the federal court hearing is scheduled to begin next Tuesday, November 12, 2024, and expected to last about two weeks. We continue to believe successful litigation process and be completed in the coming months. Allowing for a potential transaction closed in late 2024 or early 2025, in line with our previous expectations. As previously announced as part of our engagement with the FTC on the proposed acquisition of Mattress Firm, we conducted a divestiture process which led to an agreement with Mattress Warehouse, a company with extensive mattress retail experience, a strong cash total base and a capable leadership team.
We executed purchase agreement provides for the contingent sale of 73 Mattress Firm retail locations and our Sleep Outfitters subsidiary, which includes 103 specialty mattress retail locations and seven distribution centres. We expect the divestiture to close approximately one quarter after the closing of the Mattress Firm transaction. Turning to our recently filed a complaint seeking an injunction against the FTC commissions administrative proceeding, the actions asked the court to prevent the FTC some challenging the mattress from merger through its own separate administrative proceeding. In addition to the federal court proceeding, that starts next week, effectively giving the FTC two shots at us by using two different courts.
This is an issue of jurisdiction and constitutional law. As the litigation process is ongoing, our comments are limited, and we cannot take questions on pending litigation. Finally, moving for brief comments on Mattress Firm's financial performance. Mattress Firm recently made their quarterly results available on their website and they were consistent with our expectations. We believe they are weathering a difficult US market well, and we encourage you to review Mattress Firm's website to more information on their financial performance in the most recent quarter.
Before opening up the call for questions, I'd like to take a minute and reflect on the evolution of can pursue it over the last 175 years, we dedicated our efforts and expertise to continuous innovation for the benefit of customers. We have grown to become a leading global bedding company with highly recognized brands, advanced manufacturing capabilities and a diverse omnichannel platform.
Our ongoing investments to strengthen and diversify our business have resulted in nearly 60% expansion in sales since 2019 and 80% expansion in adjusted EBITDA over the same period. While we have made significant strides to grow and fortified with business, we believe that significant opportunities lie ahead of our continued focus on key growth and cost efficiency initiatives ensure success in a fragmented and evolving marketplace and that we are also optimally positioned to capitalize on a resurgence in demand in the global industry returns to growth. With that, I will open the call up for questions. Operator?
Thank you. Good morning, everyone. I would like to talk a little bit about demand. As we have gotten past the election, we think about the potential for the Fed cutting rates. Can you talk a bit about how you think for the consumer may react thoughts on how we could see demand trending as we get late this year and are early next year, ability to respond to that with the utilization rate which has got across the business and some of them new product introductions that you talk to?
Scott L. Thompson
Sure. Thanks. Thanks for your questions. As you now look to the bedding industry has really been in recession, maybe even depression. It has been a tough three years and probably from peak to where we are now kind of down 30%, which is by historical standards on a period we have never seen before. So we do think we are set for recovery or normalization.
We think it will be led by Sealy Posturepedic, which is the largest launch in Sealy's history and probably the largest bedding launch in history. You do not see reason number one brand in the US. If you look at kind of consumer to be frankly honest, we have gotten through the election, and we have gone through the election very well. We have got a peaceful transition of government, maybe a little more stability.
Certainly, retailers may be more confident to advertise, which we are going to have lower rates, maybe not quite as low as we expected six months ago. But clearly the trends in the right way and as you know, better than most of us, so we are going to have some better housing information.
So data on it looks like go should get to some normalization sometime, you know, call it in 2025. And we think we are perfectly positioned to take advantage of it. As you know, we have taken market share for probably more quarters than I can remember. I do not see any reason why we will not continue to take market share and in fact, they are probably based on the numbers I see right now. I think we took care of me to skip forward as far as our market share capture in the third quarter as compared to probably first two quarters of the year.
And we have got the capacity to address the market as it expands. Really one of their look recall after that kind of where you would ask is I think one of the real highlights in the quarter is the international team, both what we call Legacy and In-dreams, both of them had introduced a fabulous performance, double digit growth in what is also a very difficult market globally. They took a good bit of share in their relative markets. And that feels like that is sustainable taken a lot of good international rolling, but we think we have got a really good place going forward.
Susan Maklari
Okay. That is very helpful colour. Thank you. Good luck with everything.
Operator
(Operator Instructions) Bobby Griffin, Raymond James.
Bobby Griffin
Good morning, everybody. Thanks for taking the questions. And Scott, appreciate the details there on the pending acquisition. I guess so from my question on Bhaskar, I think it is probably more centred on the numbers for you, but you know, can we talk a little bit about the contribution margin of the business today? There has been a lot of changes you called out manufacturing optimization, new distribution, some growth in the OEM and then obviously the so far very successful launch internationally. So can you maybe just unpack kind of what is your view is on international and North America's go forward contribution margin? And is there anything in 2024 results that we should be mindful of, and we think about kind of level setting our model on that going forward, either good guy are bad guys against the P&L?
Bhaskar Rao
Absolutely. Let me start with the latter first. As I think about from a go-forward standpoint, let us just assume status quo, which is the existing new distribution that continues and the mix of the brands of those continue as well as international perform. So there are not any transitory items that I would specifically call out. One-time good guys are one-time bad, bad guys work where we're confident where we're proud of the performance that the business has produced in the third quarter as it relates to the contribution profit from a go-forward standpoint, how I would think about it is, again, assuming status quo and I'll define what I mean by that international business is doing extremely well.
That new addressable market that we've been going after for a number of years, we've seen the green shoots. Now we are seeing the grass grow. And internationally, we are growing low double digit. So and as you know, historically, that the contribution profit on that side of the pond is a little bit richer that in the US just given the price point they historically play at.
So when I think about the fleet being about 35% from a contribution standpoint, the international should come at a bit higher than that. As I think about from a US standpoint, North America is, let us think about it as again assuming that status quo. It is, as I think about it in and around sleek, let us call it 30% to 35% from an incremental dollar standpoint. Now, to come back to is that we do believe that low end consumer that has been sitting on our hands. They are going to come back. And as Scott pointed out, we have got an exciting new product launch coming in next year, right at that value consumer. So as that mix of that, it will be incremental EBITDA dollars. However, it would be something to be mindful of as that mix is in from a contribution standpoint.
Scott L. Thompson
You've got basically to have a product mix issue that you keep an eye on, but it is faster pointed out. Incremental EBITDA into the meat in the market is we looked in the third quarter, as I mentioned in the prepared remarks, I mean Tempur-Pedic and actually Stearns & Foster was the best-performing brand. So clearly, the weakness has been at that lower price point.
Operator
(Operator Instructions) Rafe Jadrosich, Bank of America.
Rafe Jadrosich
Hi, good morning. Thanks for taking my questions. Good morning. I was just heading into some sort of '25. I was wondering if you just sort of give us a bit of the industry like we have had. As you mentioned, you had three years of declines matches industries depress 30% below peak on, but we are also if you are looking at some of the housing indicators, existing home sales like having turned yet, it still feels like it is under pressure. Just sort of where you think we are kind of broadly on in the market heading into 2025?
Scott L. Thompson
Sure. First of all, let me just talk a little bit the housing market. We have never really thought the housing market was the primary driver for bedding. We have always described you know, a slight headwind or a slight tailwind. It has been a slight headwind, obviously, for a little also how we expected to be maybe a slight tailwind. Really, we think more advertising innovation, consumer confidence is the bigger drivers.
And look, I think if you think that all the stuff that went on record third quarter and into the fourth quarter, particularly in the United States, the US consumer has held up very well. So if we could not get to or some sort of more normal with politics, little more normal housing, when I look at the bedding industry, specifically, the product innovation is very strong. And of course, on top of my own book of business with an industry standpoint, I would tell you that products that all our competitors are making are also innovative.
So, the products are really good night. Everybody has been very good conservatively on their advertising. And as I've talked about on previous calls out, probably think we want to spend more money on top of the final driving customers into stores and thinking about spending less on the bottom of the funnel chasing last three customers, research that, but it looks like, it set up, you know, pretty well, and we're not going to 2025 guidance today for clearly there's there are some green shoots out there as Bhaskar talked about a second ago.
International is really, really doing well, again, as I mentioned also a little while ago Posturepedic launch. I mean, it is the entire Posturepedic brand. It is to reimagine into the brand for the first time it for, I do not know, a decade plus we are going to put national advertising behind it. It did not meet the market that has had problems.
And we think we should we think we have got something here as far as something that will help turn the industry and a back to normalization, which is call it a 5% or 6% growth rate. And maybe you do not get that in 2025, but you get the path to getting back to, you know, I will call it normal industry. When you look at population growth and everything up, the number of units we are selling today is extremely low. And I am not a big person on bleeding and pent-up demand, but you can't stay at these levels based on any staff that you would look at their sole per person in the country or anything else.
So when I look at it, we bid in this decline, not only that deep. We have been in for a long time. And so we are looking forward to getting back to normal market.
Bhaskar Rao
Just leveraging off of Scott, one of your comments about volumes and what the industry is doing is as this does come back. And as Scott mentioned, we are not during 2025 is the leverage component is going to be extremely powerful from a business standpoint as that goes through gross margin. So when you think about the mix that I talked about previously as well as the leverage that will go through those plans combined with the productivity initiatives that we continue to drive margin expansion in the third quarter, we think all of those items have legs that will be very constructive as it relates to EBITDA, margins and profitability.
Thank you so much for taking my question. It is a two parted. First, how does the North American gross margin performance in the third quarter, inform how we should think about the gross margin into next year, given the mix shift to the Sealy products into how do the prospect of [Harris] impact the outlook for Tempur Sealy into '25 and beyond? Thank you so much.
Scott L. Thompson
Great questions. I will take the easy one. For the last part the question, we do not think the tariffs impact as much, we do not really buy anything from China directly anymore. So 80 additional tariffs on China, really do not impact as far as overseas about the only thing we import or adjustable bases that come into Mexico and Vietnam, maybe a little [Nick] there.
If there is some tariffs related to those countries, the history of the industry, as we pass those two tariffs on, you could put some tariffs and maybe it helps a little bit, but they would be on the low-end bedding. And I would not expect it to be material really one way or the others the way we think about the new tariff and tariff environment. And then you get the complex question about the mix into gross margin.
Bhaskar Rao
It's pretty straightforward. So, when I think about North America, 3Q margins and how it informs the outlook is, again, we saw on a consolidated basis, we saw a nice gross margin expansion. We did see profitable productivity driving gross margin expansion in the quarter, offset by mix. As you get into the fourth quarter and beyond that metrics will start lapping itself a little bit in the fourth quarter and also are being grandfathered as we get more into 2025. So as a take or as a headwind, I would not think about that on a go-forward standpoint.
Again, incremental EBITDA, but it is something to think about as it relates to margins. However, what I do think about their productivity, we feel like we feel good about what we have accomplished so far. And we do feel like that has legs from a go-forward standpoint. And then overall are tempers continues.
We have a new product launch and temporary relative to the fleet that will be constructive and Stearns & Foster, as Scott pointed out, it would be a leading growth. However, over the overall business were to be constructive to the fleet. So when I think about tailwinds to the North American margins is that there's nice tailwind. Again, though, item to be mindful of is as this lower-end consumer comes back is that will mix and incremental EBITDA. But it is something to be mindful of from a rate standpoint.
Operator
(Operator Instructions) Peter Keith, Piper Sandler.
Peter Keith
Hey, good morning, guys. I bet you get a two-parter here, but just on the advertising spend, we know the importance, it seems like you pulled back on ad spend in Q3 because we saw a nice sales and marketing leverage. Could you talk about kind of the ad strategy going from Q3 into Q4? And then on a related basis, just maybe the domestic versus international sales dynamics implied for Q4. Do you think international is going to slow from the strong growth does as domestic a little worse? How should we think about those two?
Scott L. Thompson
And we feel like it is about a five-point question, but I think from an advertising spend that naturally flexes up and down based on what is going on in the market. If you are talking about the [BDTC] spend, it literally changes, you know, daily depending on it from a performance marketing just in general, we were relatively conservative in the fourth quarter considering the election and the noise around the election. So I would say we have been a little conservative, but we pretty much pretty much spent the same percentage of sales. So I would say it is consistent. I would expect will be a little more aggressive next year with the effort advertising as far as momentum internationally, we would expect them to continue to have significant momentum.
We do not think this is a one quarter thing, whether it is double digits or high singles, I don't know. But and what is a market that is clearly down. I expect the international group continue to have very good performance, both in app in total numbers, but relatively speaking in outstanding performance.
Bhaskar Rao
I think that is a contract. That is fair. Just to just to cover that, let us call it about 9.2% to 9.3% advertising versus so consistent on a prior year basis. Specifically, you had a question about growth rates on an average item, which may be noteworthy as other people at the pullback in advertising, quite frankly, we found our advertising to be much more effective because it is not quite as new. We see out there. So that is that has been a good guide to from an effectiveness standpoint.
So as Scott mentioned, consistent on a rate basis, again totalled about $119 million in the third quarter for total advertising. As I think about profiling in the fourth quarter, what we have assumed and we read into that prepared material, the US industry is kind of chugging along where it is, call it down mid-single digits from a dollar standpoint. We've I assume that same in the fourth quarter. So when you think about sales from this side of the pond or the other consistent profile, as Scott said, whether it is high single, low double internationally and from a North America standpoint, let us call it consistent, perhaps like, but slightly down a little bit. So similar profiling.
Operator
(Operator Instructions) Seth Basham, Wedbush Securities.
Seth Basham
Thanks a lot and good morning. And my question is regarding the third quarter. Can you just give us some colour on the shape of sale through the quarter, how Labor Day performed and your promotional strategy during and after Labor Day, how does that shake out and where the competition due?
Scott L. Thompson
Yes. Thanks, sir. On consistent with what we have seen in previous quarters, the trough steeper than the peak is higher. So, in holiday periods, we would have actual growth on a good bit of growth. And in the throughout, we would be negative in, and you blend it altogether. And that is the that is the trend we have seen right now for five quarters post pandemic. So that's kind of the kind of shape.
I do not think our promotional activity was significantly different year over year. I fine-tuned it here and there, we did work a little bit on it to match some promotions, that we talked about last quarter that was not calling I am kind of stuff. And then I would say more recently, I would say the promotional environment in general has gotten less in the marketplace. It looks like others are being a little less promotional in trying to squeeze out some dollars to advertise, which I would consider to be a net positive for down and the industry.
Operator
(Operator Instructions) Brad Thomas, KeyBanc Capital Markets.
Bradley Thomas
Many thanks for taking my question. Scott, you talked a bunch about your industry outlook. When we get a lot of questions about how the luxury part of the market is performing. Can you talk a bit more about that and how you think about it a luxury in terms of how much it is decline from peak and how you think about it going forward specifically? Thanks.
Scott L. Thompson
Yes, I am luxury holding up well to proceed. As I mentioned in the prepared remarks, actually Stearns & Foster was the best performing brand and Tempur-Pedic had growth in the third quarter and yeah for talking terms and known knowns numbers are perfect will talk about the industry and I'm talking US, I would guess the US industry was probably down maybe 9% to 10% in sales. And I said both those brands we are in growth. I have seen other reports of some other public companies in that they were down significantly. So it is hard for me, make a general impression general call on them on the high-end customer. But from what we are seeing in our products on high end is holding up very well.
This is Judy for Truist. I was wondering if you could give us a sense of how much that the new Sealy Posturepedic launch would be a drag on earnings and first half next year, from the advertising talked about a tailored.
Scott L. Thompson
Yes, to a great question. Not from a year-over-year standpoint, there really will not be any incremental launch costs, though when you compare the Sealy Posturepedic launch in 2025 to what we did in 2024. So there will be incremental loss cost. When you go to advertising would be incremental cost. We expect to be able to self-funded through cost reductions initiatives that we are working through. So way, we are thinking about the incremental advertising is that it will not be an incremental expense as we offset other cost reductions.
Operator
(Operator Instructions) Laura Champine, Loop Capital.
Laura Champine
Thanks for taking my question. And I thought the international growth was impressive and I hear you started that you view that as sustainable. Can you put a little more meat on those bones and tell us why growth and in international markets should be that sustainable and a pretty tough macro there, too.
Scott L. Thompson
And I know you follow us closely. If you remember, we worked on new products at Tempur for four years before we launched this new Tempur product and it was expensive, it was painful, took us a long time, but we finally got it where we needed to. So the first big driver is the new Tempur product. We got the product, right and the market has been receptive, and we backed it up with new creative that advertising. So all of that would be execution in a very difficult market.
We have also had a strategy to bring the Tempur product a little closer to we will call it high end of the market, but not the super-premium free down just a little bit. And we are working through that. Again, as I mentioned in the prepared remarks, we had some expansion in distribution.
And I don't think the true from that standpoint, if you go to the Dream side of the ledger, the Dream team has executed very well in the UK are taking significant share and being very crisp from for and execute standpoint. And the UK economy, although not robust, it, at least to stabilize. And it feels like it is beginning to perk up a little bit as if they cut interest rates and stuff so much. So it is product on the Tempur side, and its execution on both the Dream side and the Tempur side.
Operator
(Operator Instructions) Bobby Griffin, Raymond James.
Bobby Griffin
Hey, guys, thanks for let me back in really quick. Scott, I just want to actually dive in a little bit more on Stearns & Foster. You called it out strongest brand during the quarter. I think that is a reversal and maybe some of the prior trends in the past couple of quarters. So can you maybe just unpack that a little? Did you stepped in as you push a little bit more on advertising or anything to help us understand the turnaround there? It is pretty encouraging given opportunity on stones over a multiyear basis.
Scott L. Thompson
Yes, I have all the numbers that of my perception is turn to the there is really hot for a little while. Its last couple of quarters is done. Okay, but it certainly it cooled down a little bit, I think are still in growth. And then in the third quarter had a very strong third quarter. I think that I would give credit first of all, the sales group because we noticed that it slowed down a little bit in the sales group, maybe to focus.
We also had one or two skews in stones that were not as productive as we would have liked them to bid, and we tweak them are brought in new skews to replace some got those flavoured where we had a couple of underperforming skews. And with that, it is a very strong quarter. So no, no additional promotions on speaker, no additional advertising. In fact, I think advertisements a little bit down turns actually.
Operator
There are no further questions on the line at this time. I will turn the call to Scott for any additional or closing remarks.
Scott L. Thompson
Thank you, operator. To our 12,000 employees around the world. Thank you for what you do every day to make the company successful. To our retail partners, thank you for your outstanding representation of our brands. To our shareholders and lenders, thank you for your confidence in the company's leadership and its Board of Directors. This ends the call today. Operator, Thank you. Very much. Thank you.
Operator
Thank you, everyone, for your participation today.