Tempur–Pedic sees sales rise 30% in second quarter

Mattress and pillow producer Tempur–Pedic posted net sales of $342.2 million in the second quarter of fiscal 2011, up 30% from $263 million in the second quarter of 2010.

The Lexington, Ky.–based company reported net income of $53.1 million in the second quarter, compared with $33.5 million in the second quarter of 2010. Earnings per diluted share were $0.76 in the second quarter of 2011, up from $0.46 in the prior–year period.

On a constant currency basis, net sales increased 25%. Net sales in the North American segment increased 29% and international net sales rose 34%. On a constant currency basis, international net sales increased 18%.

Mattress sales increased 30% globally—up 28% in North America and 37% internationally. On a constant currency basis, international mattress sales increased 20%. Pillow sales grew 25% globally—up 19% in North America and 31% internationally. On a constant currency basis, international pillow sales increased 15%.

Gross profit margin in the second quarter of 2011 was 52.9%, compared with 48.7% in the second quarter of 2010. Tempur–Pedic attributed the gain to a favorable product mix, improved efficiencies in manufacturing and fixed–cost leverage related to higher production volumes, partially offset by higher commodity costs and new product launches.

The company’s operating profit margin was 24.2%, compared with 20.5% in the second quarter of 2010. The increase was driven by improved gross profit margin, partially offset by increased marketing investments, Tempur–Pedic said.

“We are pleased with our second–quarter performance,” said Mark Sarvary, Tempur–Pedic chief executive officer. “We executed well on new product rollouts across the globe, broadening our appeal to consumers. Productivity programs continue to expand our margins and our strategic investments in advertising are driving awareness and are already driving growth.”

Looking to the remainder of 2011, Tempur–Pedic expects net sales to range from $1.37 billion to $1.4 billion and earnings per share to range from $3.07 to $3.14 per diluted share.

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