Tempur-Pedic First-Quarter Net Climbs 16.5 Percent
LEXINGTON, Ky.-The fiscal year for Tempur-Pedic began with another solid bottom-line gain--16.5 percent to $56.2 million.
The mattress manufacturer benefited from a solid performance in net sales, which increased 18 percent to a record $384.4 million. Tempur-Pedic reported that sales in the United States rose 17 percent and that international sales were up 19 percent in the quarter, which ended on March 31. Mattress sales worldwide increased 18 percent, and that pillow sales gained 20 percent.
Commenting on the company's "solid financial performance," Mark Sarvary, Tempur-Pedic's CEO, said the first quarter was also notable for the launch of the Tempur-Simplicity collection, priced to retail at from $699 to $1,598. The company also boosted advertising investment by 37 percent in the quarter.
Gross margin picked up 132 basis points to 53.6 percent, thanks in part to greater efficiencies in manufacturing and distribution. Selling, marketing, general and administrative expenses rose 26 percent in dollars and 204 basis points as a percentage of sales, to 31.2 percent.
Tempur-Pedic also said it expects fiscal year 2012 to finish with net sales of from $1.6 billion to $1.65 billion, which would represent an increase of from 13 percent to 16 percent over fiscal 2011.