Sealy Narrows Q4 Loss as Sales Jump
Posted on January 24, 2013 by
TRINITY, N.C.-A 33 percent sales gain helped Sealy to slim down its fourth-quarter loss to $2.8 million from $15.2 million in the fourth quarter of last year.
Net sales totaled $358.1 million in the quarter, which ended on Dec. 2, bolstered by a pickup of 13.3 percent in wholesale unit volume coupled with an increase of 15.8 percent in wholesale average unit selling price. In its statement detailing the results, Sealy attributed the strong top-line results to the success of Optimum by Sealy Posturepedic and Next Generation Stearns & Foster product lines, both of which sell at higher price points.
Larry Rogers, Sealy's president and CEO, said, "Strong product offerings in both the specialty and innerspring lines, compelling advertising and continued financial discipline led to these financial results, and we are working to ensure these trends continue."
The sales gain also provided a boost to Sealy's gross margin in the quarter, which added 319 basis points to finish at 39.6 percent. Selling, general and administrative expenses rose 29.2 percent in dollars but dropped 106 basis points as a percentage of sales, to 35.7 percent.
For the year as whole, Sealy registered net income of $10,000, compared to a net loss in the prior fiscal year of $9.9 million. Net sales rose 9.6 percent to $1.3 billion.
Regarding Sealy's pending acquisition by Tempur-Pedic, the statement said the two companies have complied substantially with the request for additional information from the U.S. Federal Trade Commission, under the Hart-Scott-Rodino Act. Under an agreement between the two companies and the FTC, the FTC has up to 45 days following this compliance (which was achieved on Jan. 22) to complete its review of the transaction.