LEXINGTON, Ky.—Tempur-Pedic’s fiscal year closed with a powerful fourth-quarter performance, with net income jumping 59 percent to $46.3 million.
The mattress manufacturer benefited from improvements in sales and gross margin in the final quarter of 2010, which ended on Dec. 31, 2010. Net sales rose 20 percent to $292.7 million, fueled by a 32 percent gain in sales in North America. Gross margin rose 332 basis points to 51.9 percent.
Tempur-Pedic also kept a tight rein on expenses in the quarter. Selling, general and administrative expenses increased 12 percent in dollars but declined 185 basis points as a percentage of sales, to 27.4 percent.
Net income for Tempur-Pedic’s fiscal year as a whole increased by 85 percent to $157.1 million. The company also topped $1 billion in annual sales for the first time since 2007, with $1.1 billion in net sales, 33 percent ahead of fiscal 2009.