ATLANTA–Simmons’ first-quarter net loss hit $3.2 million as the nation’s second largest mattress manufacturer continued to struggle in a weak market.
That loss figure compared to the $2.5 million net income the company posted for the first quarter of 2008. Net sales for the quarter plummeted 19.6 percent to $222.6 million, pulled down partly by an 18.2 percent dive in domestic unit volume. These declines offset a decrease of 13.4 percent from its selling, general and administrative expenses and 23.6 percent from its cost of goods sold.
Steve Fendrich, president and chief operating officer, said the company’s cost-reduction efforts were a highlight in an otherwise dismal quarter. Fendrich also said he was “pleased with the launch of our new BeautySleep line as well as the relaunch of the newest Beautyrest Black line,” both of which took place in the first quarter.
In its first-quarter earnings statement, Simmons also said it is continuing its efforts to restructure its finances, and took a $7.4 million charge related to those efforts.