Tempur-Pedic Nearly Doubles Second-Quarter Net

LEXINGTON, Ky.-Net income for Tempur-Pedic reached $33.5 million in the second quarter, almost twice as much as in the second quarter of 2009.

The company accomplished this on a whopping net-sales increase of 42 percent to $263 million, along with a gain in gross margin of 210 basis points to 48.7 percent. In a conference call with investment analysts yesterday, Mark Sarvary, Tempur-Pedic's president and chief executive officer, said both domestic and international sales grew significantly, in spite of "an environment that is still quite unpredictable."

The increases in both sales and gross margin offset a 33 percent rise in selling and marketing expenses, and a 24.5 percent increase in general and administrative expenses. The selling/marketing costs increase owed partly to Tempur-Pedic's "Ask Me" advertising campaign, which Sarvary said provided "an exceptional return on investment."

In the conference call, Dale Williams, executive vice president and chief financial officer, said the company now expects total 2010 net sales to range between $1.06 billion and $1.1 billion.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue


    May 2017

    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money