Larry Thomas — Furniture Today,
LEXINGTON, Ky. — Specialty bedding producer Tempur-Pedic reported double-digit sales and earnings increases in the second quarter as the company said it continued to add market share and retail floor space.
The company, which is the largest supplier of visco-elastic foam mattresses and pillows, also reported a double-digit increase in unit volume.
“Account productivity is improving and distribution of our products is expanding quickly,†said Thomas Bryant, president and CEO. “Through the first half, we are pleased with our results and see abundant opportunities to continue to gain market share.â€
Worldwide sales for the quarter ended June 30 totaled $257.6 million, a 17.7% increase from the same period in 2013. Mattress sales accounted for $179.6 million that total, which represented a 19.8% jump from last year’s second quarter.
U.S. mattress sales jumped 20.8% to $127 million and domestic unit volume rose 17%, the company said.
Bryant said the company’s products were in more than 6,100 stores at the end of the quarter, including about 200 Macy’s locations. That marked Tempur-Pedic’s debut in the department store channel, and he said the product would be in about 400 Macy’s stores by the end of the third quarter.
Net income for the most recent quarter rose 26.1% to $32.9 million or 39 cents per share.
For the first half of 2014, net income rose 18.4% to $62.7 million or 74 cents per share.
First-half sales of $523.7 million were 17% ahead of the first six months of 2013, but the company didn’t provide a breakdown of mattress sales for the six-month period.
Tempur-Pedic also raised its sales and earnings guidance for the year. The company now expects 2014 sales to be $1.065 billion to $1.085 billion, up from previous guidance of $1.04 billion to $1.07 billion.
The company had sales of $945 million in 2013.
Full-year earnings are now projected at $1.63 to $1.66 per share, compared with previous guidance of $1.54 to $1.58 per share. Last year, earnings totaled $1.28 per share.
