Tempur-Pedic Sales Up 16 Percent

April 19, 2007  by in UnCategorized   

By Home Furnishings Business in Bedding on April 2007 Tempur-Pedic International, Lexington, Ky., posted a 16 percent increase in net sales to $266 million in its first quarter on the strength of a 25 percent increase in its U.S. furniture and bedding retail channel.

The company, which makes premium mattress and pillow products, reported net income of $28.8 million in the quarter that ended March 31 as compared to $26.9 million during the same period last year. Earnings per share increased 21 percent to 35 cents per diluted share.

President and CEO Thomas Bryant said, ”Tempur-Pedic International delivered a very solid quarter during what continues to be a challenging environment for the bedding industry.

He said first-quarter results were “somewhat moderated” by limitations on production capacity at its new factory in Albuquerque, N.M, which had increased its production substantially in late March: “Our U.S. business experienced mattress shortages resulting from strong consumer demand, low levels of inventory at the beginning of the year and capacity constraints. In addition, in order to minimize backorders for our existing retail partners, we limited the opening of new accounts such that our total U.S. door count is unchanged from the prior quarter.”