Tempur-Pedic Sales to Drop in Second Quarter
June 6, 2012,
LEXINGTON, Ky.-In an unprecedented statement regarding its financial performance, Tempur-Pedic said it expects second-quarter sales to come in at 3 to 5 percent less than sales in last year's second quarter.
The company said this projection came from the expectation that North American sales will drop 8 percent in the quarter. Based on the predicted sales declines and a resulting increase in expenses as a percentage of sales, Tempur-Pedic said it expects earnings per share to fall 50 percent in the quarter.
The company's projection for sales for the fiscal year as a whole are $1.43 billion, which would be slightly ahead of the record $1.42 billion in sales posted for last year. Nevertheless, Sarvary said, Tempur-Pedic is "taking actions to realign our expense structure appropriately."