Tempur-Pedic Predicts Record 1Q

April 10, 2011  by in UnCategorized   

By Home Furnishings Business in Bedding on April 11, 2011

Memory foam bedding manufacturer Tempur-Pedic (NYSE: TPX) announced record performance in preliminary financial results for first-quarter 2011 on Thursday.

Tempur-Pedic, Lexington, Ky., currently expects first-quarter 2011 net sales of approximately $325 million, a 28 percent increase compared with the first quarter of 2010. The company currently expects earnings for the period per diluted share  to range between $0.67 and $0.68.

Tempur-Pedic also increased its full-year 2011 guidance for net sales and earnings per share. It currently expects net sales for 2011 to range from $1.31 billion to $1.36 billion; EPS for 2011 to range from $2.80 to $2.95. The Company noted its EPS guidance assumes a full year diluted share count of approximately 71 million and does not assume any benefit from a potential further reduction in shares outstanding related to its share repurchase program.

"First quarter sales and profits exceeded our prior expectations in both our North American and International segments," said Chief Executive Officer Mark Sarvary. "During the quarter, we made progress in our effort to enhance our product range and significantly increased our investment in consumer marketing as we seek to capitalize on the considerable market share opportunity we see for our brand."

"We are pleased that our manufacturing and productivity initiatives continued to deliver significant benefits, which helped drive improved gross margin on a sequential basis," said Chief Financial Officer Dale Williams. "In revising our financial guidance, we considered both the positive sales trends we experienced during the quarter as well as a more inflationary outlook for commodities."