Sealy Posts $15.8 Million Net Loss in Q3; Names Rogers to Board
TRINITY, N.C.-Sealy's bottom line turned red in the third quarter, as the nation's largest mattress manufacturer reported a net loss of $15.8 million.
Net sales worldwide totaled $346.2 million for the quarter, down 1 percent (total U.S. net sales decreased 2.2 percent to $251.0 million from the third quarter of fiscal 2009). Gross margin fell 205 basis points to 39 percent, due to higher discounting on products and increases in materials costs. Selling, general and administrative expenses declined 2.5 percent, but a one-time asset-impairment charge of $23 million related to the write-down of assets in the company's European segment hurt its operating results.
Larry Rogers, Sealy's president and chief executive officer, said the results "reflect the inconsistent industry demand and ongoing pressures in the overall macroeconomic and retail environment." Looking for positives, Rogers said the company has completed the rollout of its Sealy Promotional collection, and that the rollout of the new Embody line will be completed in the fourth quarter. Sealy is also on track for the launch of the Next Generation Posturepedic collection in January 2011.
In a separate announcement, Sealy said Rogers has been named to its board of directors. Also appointed to director spots were Deborah Ellinger, advisor to Catterton Partners, former president of Restoration Hardware and chief executive officer of Old Mother Hubbard/Wellness Pet Food; and John Replogle, chief executive officer of Burt's Bees.