Tempur Sealy International 2Q sales up 8.2%

LEXINGTON, Ky. — Bedding major Tempur Sealy International said second-quarter sales rose 8.2%, thanks to increases in both its Tempur-Pedic and Sealy businesses.

The company said Tempur- Pedic’s North American bedding sales shot up 12.2%, while Sealy’s net sales jumped 6.8%.

“We experienced solid sales growth in each of our business segments, with particular strength in the U.S. driven by the initial success of our new products,” said Mark Sarvary, CEO. “The investment in new products and related marketing in the first half of 2014 pressured margins, but now that the products are rolled out, we expect significant margin improvement for the balance of the year.”

Tempur Sealy incurred a net loss of $2.2 million or 4 cents per share in the quarter. The red ink was largely due to a $20.4 million loss on the recent sale of the company’s three innerspring factories to Leggett & Platt.

In last year’s second quarter, the company had a net loss of $1.6 million or 3 cents per share. Those figures included a variety of transaction and integrations costs from the Sealy acquisition, which was completed in March 2013.

Net sales totaled $715 million, up from $660.6 million in last year’s second quarter.

Tempur-Pedic’s North American bedding sales totaled $223.9 million, up from $199.5 million in the comparable quarter, while Sealy’s sales were $368.2 million, up from $344.6 million.

For the first half of the year, Tempur Sealy had net sales of $1.42 billion. That was up nearly 35% from the first half of 2013, but last year’s figures only included Sealy’s numbers for a little more than three months of the period.

Six-month net income totaled $25.2 million or 41 cents per share. That was up from $10.9 million or 18 cents per share in the first half of last year.

The company boosted its 2014 sales projection to a range of $2.925 billion to $2.975 billion. That was up from a May forecast of $2.8 billion to $2.9 billion.