LEXINGTON, Ky.–Fourth-quarter net income for Tempur-Pedic plummeted 97 percent to $1.1 million as the company struggled through the continuing challenges of a worsening economy and declining spending by consumers, according to the company.
Sales in 2008’s final quarter dropped 35 percent to $189.1 million, offsetting cutbacks in cost of goods sold and selling, general and administrative expenses. The decrease in sales was most pronounced in the U.S. market, in which sales fell 39 percent, while international sales declined 27 percent. In a company statement, Tempur-Pedic also reported a “significant” sales decrease in the high-margin direct retail channel.
For the year as a whole, Tempur-Pedic reported net income of $58.9 million, down 58 percent from 2007. Sales for the year finished at $927.8 million, off 16 percent.
Mark Sarvary, president and chief executive officer, said that, in spite of the poor results for 2008, Tempur-Pedic is “well positioned financially” to meet what he expects to be a challenging environment in 2009. Regarding this year, the company predicted that its sales will range from $770 million to $790 million this year.