| BRIEFLY | |
| First-quarter snapshot | |
| Net sales | $384.4 million |
| Net income | $56.2 million |
| Gross profit margin | 22.4% |
Specialty bedding manufacturer Tempur-Pedic, which has headquarters in Lexington, Ky., reported net sales of $384.4 million for the first quarter of fiscal 2012, an increase of 18% over the first quarter of 2011. Earnings per share were up 26% at $0.86 for the quarter.
North American net sales increased 17% over the prior-year quarter. International net sales increased 19%. On a constant-currency basis, international net sales increased 22%.
Global mattress sales increased 18%, with a 15% increase in the North American segment and a 26% increase in the international segment. On a constant-currency basis, international mattress sales increased 29%. Pillow sales increased 20% globally—up 22% in North America and 17% internationally. On a constant-currency basis, international pillow sales increased 19%.
The company reported that its net income increased 16.5% to $56.2 million for the first quarter of 2012 as compared with the first quarter of 2011. First-quarter net income included a net benefit of $2 million from the resolution of foreign tax matters, the company said.
Tempur-Pedic’s gross profit margin was 53.6% as compared with 52.3% in the first quarter of 2011. The increase was a result of improved efficiencies in manufacturing and distribution and fixed-cost leverage related to higher production volumes, partially offset by higher costs associated with new products, the company said.
Operating profit margin was 22.4% as compared with 23.1% in the first quarter of 2011.
“In the first quarter, we delivered solid financial performance, enhanced our product range with the introduction of Tempur-Simplicity and increased our investment in advertising by 37% to $47 million,” said Mark Sarvary, Tempur-Pedic chief executive officer. “We are excited about the rollout of our new dealer programs beginning in the second quarter.”
During the first quarter of 2012, the company purchased 0.2 million shares of its common stock for a total cost of $12 million. As of March 31, $238 million was available under its existing share repurchase authorization.
Tempur-Pedic expects net sales for 2012 to range from $1.60 billion to $1.65 billion and earnings per share to range from $3.80 to $3.95.
