Bedding producer Tempur–Pedic International says its net sales in the fourth quarter of 2009 were up 29%, to $244.8 million from $189.1 million in the fourth quarter of 2008. On a constant currency basis, net sales increased 24%. Net sales in the domestic segment increased 40%, while net sales in the international segment grew 15%. On a constant currency basis, international segment net sales rose 3%.
The Lexington, Ky.–based company reported net income of $29.1 million in the fourth quarter, compared to adjusted net income of $12.7 million in 2008.
Fourth–quarter mattress sales increased 26% globally. They were up 34% in the domestic segment and 12% in the international segment. On a constant currency basis, international mattress sales were essentially unchanged. Pillow sales grew 23% globally, up 39% domestically and 13% internationally. On a constant currency basis, international pillow sales rose 1%.
Gross profit margin was 48.5%, as compared to 43% in the fourth quarter of 2008. The company said the increase was due to improved efficiencies in manufacturing, lower commodity costs, fixed–cost leverage related to higher production volumes and improved pricing. Tempur–Pedic’s operating profit margin was 19.3% in fourth–quarter 2009, up from 13.4% in 2008.
For the year, Tempur–Pedic reported net sales fell 10%, to $831.2 million from $927.8 million in 2008. On a constant currency basis, net sales declined 9%. Net sales in the domestic segment declined 8%, while international segment net sales fell 14%. On a constant currency basis, international segment net sales dropped 11%.
Gross profit margin was 47.4% for 2009, as compared to 43.2% in 2008. Operating profit margin was 17.4%, an increase from 14.4% in 2008.
“Our fourth–quarter and full–year results reflect a gradual improvement in the macro–environment together with success from sales and marketing initiatives. Our recent product introductions and our new advertising campaign, combined with continued productivity improvements, should allow us to build on this performance in 2010,” said Mark Sarvary, Tempur–Pedic chief executive officer.
In other news, Tempur–Pedic announced that its board has authorized the repurchase of up to $100 million of the company’s common stock shares.
“We view share repurchases as an excellent means to return value to stockholders over the long term,” said Dale Williams, chief financial officer.