Tempur Sealy Rises on Pop in Quarantine Mattress Sales By Investing.com

© Reuters.

By Christiana Sciaudone

Investing.com —  Tempur Sealy (NYSE:) rose more than 8% after the mattress maker reported far bigger sales numbers than expected.

The trends quarter-to-date have improved from previous expectations, and the company now estimates total third quarter net sales to grow more than 30% compared to the previous year.  

On the down side, Tempur Sealy is seeing capacity constraints for U.S. Sealy products, including supply chain limitations outside the company’s control. Tempur Sealy is working with suppliers to find solutions for component shortfalls to support the elevated demand.

Tempur Sealy Chairman and CEO Scott Thompson said, “Tempur-Pedic branded products are now growing materially higher than the growth on Sealy products in the U.S. which has raised our profit expectations for the quarter.”

He added: “Free cash flow has also been strong and our confidence in positive industry trends has increased.”

This month, the company will use operating cash flow to repay a $200 million 364-day incremental term loan closed in the second quarter, resulting in an annual interest savings of approximately $5 million.   

The company also announced a new head for Tempur Sealy North America as of January 1: Cliff Buster, who has been with Tempur Sealy since 2017.    

Shares have nearly quadrupled since March, and the stock has eight buy ratings, two holds and no sells.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.