Tempur-Pedic Nearly Doubles Second-Quarter Net
LEXINGTON, Ky.-Net income for Tempur-Pedic reached $33.5 million in the second quarter, almost twice as much as in the second quarter of 2009.
The company accomplished this on a whopping net-sales increase of 42 percent to $263 million, along with a gain in gross margin of 210 basis points to 48.7 percent. In a conference call with investment analysts yesterday, Mark Sarvary, Tempur-Pedic's president and chief executive officer, said both domestic and international sales grew significantly, in spite of "an environment that is still quite unpredictable."
The increases in both sales and gross margin offset a 33 percent rise in selling and marketing expenses, and a 24.5 percent increase in general and administrative expenses. The selling/marketing costs increase owed partly to Tempur-Pedic's "Ask Me" advertising campaign, which Sarvary said provided "an exceptional return on investment."
In the conference call, Dale Williams, executive vice president and chief financial officer, said the company now expects total 2010 net sales to range between $1.06 billion and $1.1 billion.