Sealy sales decline 20.9%
By Larry Thomas -- Furniture Today, April 6, 2009
ARCHDALE, N.C. — Bedding major Sealy reported a profit of $4.75 million for the quarter ended March 1 as worldwide sales fell 20.9%.
The company, which produces the Sealy, Stearns & Foster and Bassett brands, said domestic sales were off 16.5% in units and dollars amid continued weak demand at retail.
“We maintained a tight focus on positively affecting the areas of our business that we can control, including further reducing expenses, providing customers with value-oriented Sealy products to address their current needs, and unveiling our new Stearns & Foster line,” said Larry Rogers, president and CEO.
Worldwide sales in the period, the first quarter of Sealy's fiscal year, totaled $310 million. That's down from $392 million in the quarter ended March 2, 2008.
The most recent quarter's profit, which equals 5 cents per share, included a one-time gain of $1.3 million from the sale of equity in Sealy's Korean subsidiary. Net income was down more than 70% from the 2008 quarter, when the company had earnings of $16.2 million or 17 cents per share.
Domestic sales of $231 million in the most recent quarter were down from $276.7 million a year earlier. Rogers said Sealy “generated significant cash flow” during the quarter and was able pay down $64 million in debt.
“While we expect market conditions to remain difficult, we intend to continue to capitalize on our industry-leading position,” he said. “We are confident that we are well positioned with the most diversified range of product technologies and price points in the industry.”
Sealy
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 3/1 | 2009 | 2008 | Change |
| (a) Includes net royalty income of $3.4 million in the 2009 quarter and $4.9 million in the 2008 quarter. Also includes a pretax gain of $1.3 million on the sale of subsidiary stock. |
|||
| Sales | $309,976,000 | $391,929,000 | (20.9%) |
| Operating income | 21,554,000 | 36,992,000 | (41.7%) |
| Net income (a) | 4,746,000 | 16,214,000 | (70.7%) |
| Earnings per share | 0.05 | 0.17 | (70.6%) |
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Sealy posts profit despite 20.9% sales decline
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