More Records for Tempur-Pedic as Fiscal Year Closes
January 25, 2012,
LEXINGTON, Ky.-Tempur-Pedic finished the 2011 year with a slew of records in financial results.
Net income for the fourth quarter, which ended on Dec. 31, reached a record $56.3 million, up 22 percent from the fourth quarter of last year. Net sales for the quarter were $366.8 million, an increase of 25 percent. For the full fiscal year, net income was $219.6 million, a gain of 40 percent over the prior year, and net sales rose 28 percent to $1.4 billion.
For the fourth quarter, Tempur-Pedic posted a 31 percent jump in selling, marketing, general and administrative expenses in dollar terms. As a percentage of sales, these items increased 132 basis points to 28.7 percent. Gross margin fell 790 basis points to 25.9 percent.
Along with vowing that Tempur-Pedic would maintain its momentum in new product development and advertising spending, Sarvary told the analysts that the company would target the market for $1,000-$2,000 mattresses, one "that we currently do not address in a meaningful way." He said the company would launch a three-bed line in this price range at next week's Las Vegas Market, priced at $1,499 for a queen size.