LEXINGTON, Ky.–The final quarter of the year brought a 129 percent jump in net income for Tempur-Pedic, to $29.1 million.
The mattress manufacturer accomplished this largely on the basis of a 29 percent gain in net sales, which finished the quarter at $244.8 million, thanks to significant increases on both the domestic and international markets. This pickup produced a gross-profit increase of 46 percent, which helped offset increases of 31 percent in selling and marketing expenses, and 23 percent in general, administrative and other expenses.
For the full 2009 fiscal year, Tempur-Pedic posted a 44 percent increase in net income, to $85 million. Net sales fell 10 percent to $831.2 million, but the company was able to trim selling and marketing expenses by 11 percent. Cost of sales dropped 17 percent.
Mark Sarvary, chief executive officer, said the positive quarter owed to a gradual improvement in the economy as a whole and Tempur-Pedic’s sales and marketing initiatives. Sarvary added that the company’s advertising campaign and productivity improvements point to a strong performance in 2010.