13928 Wed, 03/05/2008 - 12:54pm
TRINITY, N.C.–Sealy has stated that it expects its first-quarter sales to fall by the mid- to high-single digits as the company struggles with a tough economic environment.
In a filing with the U.S. Securities and Exchange Commission, the nation’s number-one mattress manufacturer said its domestic sales performance deteriorated in the fourth quarter of 2007, and that it’s facing “continued weakness in its domestic business” thus far in this quarter. After the company detailed some of the problems its business is facing during a Webcast as part of the Raymond James 29th Annual Institution Investors Conference, Sealy’s share prices fell from $8.60 per share to less than $8 a share in trading yesterday afternoon, in the space of about two hours.
In the SEC filing, Sealy said domestic sales in December and January were challenged but finished in line with the company’s expectations. However, February sales declined significantly and fell below the company’s expectations.
Sealy also said it had begun several initiatives designed to accelerate cost reductions in the first quarter. “These actions are anticipated to provide approximately $2 million in annualized cost savings,” the company said.