Sealy Posts $15.8 Million Net Loss in Q3; Names Rogers to Board
September 29, 2010,
TRINITY, N.C.-Sealy's bottom line turned red in the third quarter, as the nation's largest mattress manufacturer reported a net loss of $15.8 million.
Net sales worldwide totaled $346.2 million for the quarter, down 1 percent (total U.S. net sales decreased 2.2 percent to $251.0 million from the third quarter of fiscal 2009). Gross margin fell 205 basis points to 39 percent, due to higher discounting on products and increases in materials costs. Selling, general and administrative expenses declined 2.5 percent, but a one-time asset-impairment charge of $23 million related to the write-down of assets in the company's European segment hurt its operating results.
In a separate announcement, Sealy said Rogers has been named to its board of directors. Also appointed to director spots were Deborah Ellinger, advisor to Catterton Partners, former president of Restoration Hardware and chief executive officer of Old Mother Hubbard/Wellness Pet Food; and John Replogle, chief executive officer of Burt's Bees.