Mattress maker Tempur–Pedic, which has headquarters in Lexington, Ky., reported net sales of $325.8 million in the first quarter of 2011, a 28% increase over the same period a year ago. Earnings per share were up 54% at $0.68.
North American net sales increased 37%. International segment net sales increased 11%. On a constant–currency basis, international net sales increased 8%.
Global mattress sales increased 29% over the prior–year period. They increased 36% in North America and 12% internationally. On a constant–currency basis, international mattress sales increased 10%. Pillow sales increased 13% globally—up 24% in North America and 3% internationally. On a constant–currency basis, international pillow sales were flat.
“First–quarter sales and profits exceeded our prior expectations in both our North American and international segments,” said Mark Sarvary, Tempur–Pedic chief executive officer. “During the quarter, we made progress in our effort to enhance our product range and significantly increased our investment in consumer marketing as we seek to capitalize on the considerable market share opportunity we see for our brand.”
Gross profit margin for the quarter was 52.3% as compared to 49.2% in the first quarter of 2010. The increase, the company said, was a result of improved manufacturing efficiencies, a favorable product mix and reductions in fixed costs.
Operating profit margin was 23.1% as compared to 20.6% in the first quarter of 2010. The company attributed the increase to improved gross profit margins partially offset by increased marketing investments.
Tempur–Pedic generated $55.7 million in operating cash flow in the first quarter of 2011 as compared to $23.3 million in the prior–year period.
During the first quarter, the company purchased 1.32 million shares of its common stock at an average price of $47.35 for a total cost of $62.5 million.
“We are pleased that our manufacturing and productivity initiatives continued to deliver significant benefits, which helped drive improved gross margin on a sequential basis,” said Dale Williams, chief financial officer.
