LEXINGTON, Ky.–Tempur-Pedic’s first-quarter net income totaled $13.5 million, 55 percent less than the first quarter of last year, as the difficult retail environment claimed yet another victim.
“The U.S. macroeconomic environment deteriorated during the quarter and contributed to what we believe is a slowdown in the mattress industry,” said H. Thomas Bryant, Tempur-Pedic’s president and chief executive officer, who is retiring within the next two months. “Based on industry data and retailer feedback, we believe average selling prices in the industry are trending lower as many consumers defer high-end mattress purchases.”
Sales at the nation’s fifth-largest mattress manufacturer dropped 7 percent to $247.2 million in the first quarter. In a conference call to analysts, Dale Williams, executive vice president and chief financial officer, said the decline in sales was driven by a 20 percent fall in domestic units sold, along with a 19 percent decrease in domestic sales of bed pillows.