From Home Furnishing Business
Tempur Sealy Registers Double-Digit Sales, Profit Declines in Q3
The company said sales fell 12.9% to $724.8 million in the quarter ended Sept. 30, while net income tumbled more than 42% to $44.6 million or 81 cents per share.
In last year’s third quarter, net income was $77.8 million or $1.32 per share.
The company, which stopped doing business with Mattress Firm in April, said last year’s third quarter included $171.5 million in sales to that retailer, and noted that North American sales rose 10% in the most recent quarter when those sales are excluded from the comparison.
In addition, Tempur Sealy estimated hurricanes Harvey and Irma cost the company $10 million to $15 million in third-quarter sales.
"The team generated one of the highest cash flow quarters in our company's history despite several challenges including a significant change in our distribution network, three hurricanes, and commodity inflation,” said Scott Thompson, chairman and CEO.
“Looking ahead, our robust pipeline of innovation provides the foundation for new products next year, especially an exciting new Tempur-Pedic line in North America. These products, combined with our new multi-channel advertising campaigns will reinforce our leadership position in premium bedding, provide our retailer partners with a competitive advantage to grow their revenue and earnings, and simplify the consumers' retail experience."
For the nine months ended Sept. 30, sales were down 10.7% to $2.11 billion. Nine-month net income tumbled 25.7% to $103 million or $1.89 per share.