Simmons Reports 15.2 Percent Increase in 2nd Quarter

August 14, 2007  by in UnCategorized   

By Home Furnishings Business in Bedding on August 2007 Atlanta-based Simmons, one of the nation’s largest mattress manufacturers, said Tuesday that net sales in its second quarter increased 15.2 percent to $277.9 million. Net income for the second quarter that ended June 30 was $0.9 million, down from $2.1 million a year earlier.

“In the second quarter and first half of this year our business operated at record sales levels despite a relatively soft home furnishings sales environment,” said Chairman and CEO Charlie Eitel. “Our year-to-date sales growth of 14.3 percent has been driven principally by effective marketing and our decision to be competitive at a broad range of retail price points. This has resulted in strong demand for our U.S. products, especially our Beautyrest brand, and we believe a sizable gain in market share.”

He said operating margins in the first half of the year were negatively impacted by roll-out costs tied to the transition to a new Beautyrest line and compliance with new flame resistance standards that became effective last month.