Tempur Sealy Posts Q2 Loss as Company Adjusts to Merger
July 29, 2013,
LEXINGTON, Ky.-The costs of integrating Sealy into Tempur-Pedic were a major factor in Tempur Sealy's second-quarter loss of $1.6 million, compared to second-quarter net income of $29.1 million from one year ago.
Tempur-Pedic closed on its acquisition of Sealy in March, and the company changed to the Tempur Sealy moniker in May. These results do not reflect Sealy's financial performance from last year, according to the company.
Selling, general and administrative expenses were up 67 percent from last year, reflecting those additional costs, although as a percentage of sales SG&A fell 424 basis points to 21.2 percent. In addition, gross margin plummeted 1,206 basis points to 38.6 percent.
He added that Tempur Sealy is continuing with the growth initiatives debuted earlier this year, including the rollouts of the new Tempur-Choice line in North America and the launch of several new products at this week's Las Vegas Market. The company has also ramped up on advertising, including new campaigns for both Tempur-Pedic and Sealy collections, along with the return of the "Ask Me" campaign, which will be tagged with a unique promotion event for Labor Day, Sarvary said.
Other Articles By Author
Von Tobel Cites Brass Textures Among Top Trends
HFN's DIGITAL EDITION
2017 State of the Industry Report
Cautious Optimism, Mixed Results
Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.
ALSO IN THIS ISSUE:
- TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
- Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
- N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.