ISPA reports modest 1Q, forecasts brighter '07–'08
By David Perry -- Furniture Today, May 21, 2007
Alexandria, Va. — The International Sleep Products Assn. reported a modest increase in U.S. mattress sales in the first quarter, and forecasts a brighter picture for the remainder of this year and for 2008.
ISPA said that first quarter sales for the 19 U.S. bedding producers it surveyed were up in dollars by 1.6%, while unit shipments increased a bare 0.2%, for a quarterly average unit selling price rise of 1.4%.
In the quarter, unit shipments of innerspring mattresses declined by 1.4%, while non-innerspring unit shipments grew by 7.3%, ISPA's survey found.
The trade association said the first-quarter data extends a trend of declining or essentially flat unit shipments and increasing revenues, which began in the second quarter of 2006. It said that while wholesale revenues did increase, the industry's performance in the first quarter was below the level the industry experienced from 2004 through the middle of 2006.
ISPA said mattress industry performance is affected by trends in the economy, especially continuing sluggishness in housing and high energy prices. But it noted that unit and dollar figures for high-end mattresses, those priced above $1,000, were up in the first quarter.
ISPA also released updated forecasts for 2007 and 2008. The forecast calls for a 5.5% increase in the dollar value of bedding shipments this year, with a 1% increase in unit shipments. That's toned down from the previous ISPA forecast issued in February, which called for an 8.5% jump in dollars and a 1.5% increase in unit shipments.
Furniture/Today's 2007 bedding consensus forecast, issued in December, calls for a unit decline of 0.1%, with a dollar increase of 5.4%.
ISPA sees a stronger year in 2008. It is forecasting a 7% increase in the dollar value of bedding shipments, and a 2.5% increase in units.
"While sales have flattened over the past year, we expect this to be a temporary development, and it's consistent with historical cycles," said ISPA President and CEO Dick Doyle.
