Tempur-Pedic's Wide Awake Second Quarter...Net Up 58 Percent
July 27, 2011,
LEXINGTON, Ky.-The Tempur-Pedic financial engine was in high gear in its fiscal second quarter, with a gain in net income of 58.4 percent to $53.1 million.
The bottom line for the specialty mattress manufacturer was fueled by a strong 30 percent increase in net sales, to $342.2 million, and a boost of 424 basis points to its gross margin, to 52.9 percent. Sales for the quarter, which ended on June 30, rose significantly both in North America (up 29 percent) and internationally (up 34 percent). Speaking yesterday to analysts in a conference call (with the transcript obtained from SeekingAlpha.com), Mark Sarvary, Tempur-Pedic's president and CEO, said gross margin was helped by a favorable product mix in sales and the company's ability to leverage fixed costs.
Based on the second quarter, Tempur-Pedic now expects net sales for all of 2011 to range between $1.37 and $1.4 billion, which would be an increase of from 25 percent to 27 percent over fiscal 2010.
Other Articles By Author
HFN Launches Interactive Idea Book
HFN's DIGITAL EDITION
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.
ALSO IN THIS ISSUE:
- 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