ATLANTA–Simmons posted a net loss of $5.8 million in the second quarter, as compared to net income of $1.2 million for the second quarter of 2008.
The nation’s second largest manufacturer of mattresses continued to suffer from the downturn in the industry, as net sales fell 18.6 percent to $218 million in the quarter. The decline in dollar sales occurred because of a 15.5 percent fall in unit volume and a 0.9 percent decrease in average unit selling price. The sales drop offset Simmons’ cost-cutting efforts, which in the second quarter brought about a 15.6 percent reduction in selling, general and administrative expenses, and a 25.7 percent slimming in cost of products sold.
Despite the loss, Steve Fendrich, Simmons’ president and chief operating officer, cited some positive developments in the quarter. Fendrich said sales of the company’s upper-end lines, including the patented Beautyrest NxG and Beautyrest Black, were promising. The BeautySleep line also performed well, Fendrich added.