More Records for Tempur-Pedic as Fiscal Year Closes
LEXINGTON, Ky.-Tempur-Pedic finished the 2011 year with a slew of records in financial results.
Net income for the fourth quarter, which ended on Dec. 31, reached a record $56.3 million, up 22 percent from the fourth quarter of last year. Net sales for the quarter were $366.8 million, an increase of 25 percent. For the full fiscal year, net income was $219.6 million, a gain of 40 percent over the prior year, and net sales rose 28 percent to $1.4 billion.
Speaking to financial analysts on a conference call yesterday, Mark Sarvary, Tempur-Pedic's president and CEO, said sales growth was strong both domestically and overseas, and that the company continues to gain market share around the world. Sarvary credited the company's continuing gains to its new products, increased investments in advertising and continued expansion and distribution.
For the fourth quarter, Tempur-Pedic posted a 31 percent jump in selling, marketing, general and administrative expenses in dollar terms. As a percentage of sales, these items increased 132 basis points to 28.7 percent. Gross margin fell 790 basis points to 25.9 percent.
Along with vowing that Tempur-Pedic would maintain its momentum in new product development and advertising spending, Sarvary told the analysts that the company would target the market for $1,000-$2,000 mattresses, one "that we currently do not address in a meaningful way." He said the company would launch a three-bed line in this price range at next week's Las Vegas Market, priced at $1,499 for a queen size.