Subscribe to Furniture Today
Research Store
RSS
Reprints/License
Print
Email

Share this on
Facebook
LinkedIn
Twitter

Sealy sales fall 20.5% in quarter

Company takes refinancing charge, posts $5.2 million loss

Larry Thomas -- Furniture Today, July 1, 2009

ARCHDALE, N.C. — Bedding major Sealy Corp. swung to a net loss of $5.2 million in the quarter ended May 31 as sales fell 20.5%.

The loss included one-time charges of $11.9 million stemming from the company's recent refinancing of its senior credit facility.

The loss in the most recent period, the second quarter of Sealy's fiscal year, equals 6 cents per share. In the same quarter last year, the company had net income of $12 million or 13 cents per share.

Worldwide sales totaled $298.5 million, compared with $375.4 million in last year's second fiscal quarter.

Wholesale domestic sales, which don't include third-party sales from Sealy's components plants, were down 13.8% to $217.9 million. Domestic unit volume tumbled 13.2% and the average unit selling price fell 0.7%, the company said.

International sales were $76 million, a 34.9% drop from last year's second quarter, due largely to a weak retail environment in Canada and Europe.

"During the second quarter, we were able to strengthen our competitive position, execute consistently on our strategic initiatives, and substantially improve our operating performance compared to the first quarter of fiscal 2009, despite the continuation of challenging global macroeconomic conditions and a difficult retail environment," said Larry Rogers, president and CEO.

Sealy said its selling, general and administrative expenses in the quarter were 17.9% lower than in the same period a year ago. Part of the decline was due to reductions in national advertising spending, personnel costs, product launch costs, and related fixed operating costs.

For the six months ended May 31, worldwide sales were down 20.7% to $608.4 million.

The six-month loss totaled $492,000 or 1 cent per share. That compares with net income of $28.2 million or 30 cents per share in the first half of the previous fiscal year.

As of May 31, Sealy's debt, net of cash, stood at $760.9 million.

RSS
Reprints/License
Print
Email

Share this on
Facebook
LinkedIn
Twitter

Resource Center

Featured Company


Related Resources

Advertisement

Related Microsite Content

Related Links

  • No Related Content Available

More Content
  • Blogs
  • Photos

Mike Root

From A Rep's Perspective

Mike Root, President, Furniture Sales of Mid-America
May 31, 2011
The Hot New Marketing Idea Furniture Retailers Are Chasing
After my last post, Sev Ritchie from Web4Retail called me up to discuss the...
More

Mike Root

From A Rep's Perspective

Mike Root, President, Furniture Sales of Mid-America
May 31, 2011
The Hot New Marketing Idea Furniture Retailers Are Chasing
The Hot New Marketing Idea Furniture Retailers Are ChasingAfter my last post, Sev...
More

» VIEW ALL BLOGS RSS

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.
VIEW ALL GALLERIES

research marketing module
Casual Living Conference
eNewsletters
eletter_callout_box_FT2
About Us   |   Advertise   |   Site Map   |   Contact Us   |   Subscription   |   Affiliate Links   |   RSS
© 2012 Sandow Media LLC.All rights reserved.
Use of this website is subject to its Terms of Use | Privacy Policy