Sealy Goes From Loss to Profit in Q3, Launches Specialty Division
TRINITY, N.C.-Sealy turned a $15.8 million net loss from last year's third quarter into net income of $6.6 million--and has unveiled its new division that will focus on specialty bedding.
The company's return to profitability in the quarter, which ended on Aug. 28, owed to the rapid rollout of its Next Generation Posturepedic mattress line, which helped boost net sales by 4.2 percent to $334.1 million. Also helping the bottom line was the absence of a $25 million loss from discontinued operations in last year's quarter.
Selling, general and administrative expenses rose 3.6 percent in dollars but fell back 18 basis points as a percentage of sales, to 31.2 percent. Gross margin declined 23 basis points to 41 percent.
In forming the new specialty division, Sealy said Mark Delahanty would assume the leadership of the division as vice president and general manager of specialty bedding. Delahanty reports directly to Larry Rogers, Sealy's president and CEO.
Rogers said the division's first collection, the Embody line, will debut at Las Vegas Market this coming January.