Mattress and pillow producer Tempur-Pedic posted net sales of $383.1 million in the third quarter of fiscal 2011, up 30% from $295.8 million in the third quarter of 2010.
The Lexington, Ky.-based company reported net income of $61.9 million in the third quarter of 2011, as compared with $44.2 million in the prior-year period. Earnings per diluted share increased 45% to $0.90 in the third quarter, as compared to $0.62 in the prior-year period.
On a constant-currency basis, net sales increased 26%. Net sales in the North American segment increased 30%, while international segment net sales grew 28%. On a constant-currency basis, international sales rose 15%.
Mattress sales increased 28% globally—up 28% in North America and 31% internationally. On a constant-currency basis, international sales rose 18%. Pillow sales increased 12% globally—up 5% in North America and 21% internationally. On a constant-currency basis, international pillow sales increased 9%.
Gross profit margin in the third quarter of 2011 was 52.4%, compared with 51% in the third quarter of 2010. Tempur-Pedic attributed the increase to improved efficiencies in manufacturing, a favorable product mix and fixed-cost leverage related to higher production volumes, partially offset by commodity costs and new product introductions.
Operating profit margin was 25.2%, compared with 23% in the prior-year period. The increase was driven by improved gross profit margin and operating expense leverage, partially offset by increased marketing investments, the company said.
“We are pleased with our third-quarter results globally,” Mark Sarvary, Tempur-Pedic chief executive officer, said. “Our strategic investments in brand awareness and new products continue to deliver growth. We remain confident of the potential to grow sales and earnings over the long term.”