Sealy’s earnings rise 11.6% in fourth quarters
Earnings fall 20.3% as average unit selling price drops
By Furniture Today Staff -- Furniture Today, February 4, 2008
TRINITY, N.C. — Sealy’s sales were up 11.6% in the fourth quarter, but earnings fell 20.3% from the same period a year ago as the company’s average unit selling price declined and it spent $7.3 million on flame-retardant materials.
Sales in the quarter came to $441.3 million, up from $395.3 million a year earlier. The 2007 quarter was 13 weeks, one week longer than the 2006 period, and the extra week contributed net sales of $32.3 million, the company said.
Unit sales were up 20.1% in the quarter but the average unit selling price was down 7%. The company attributed the decline to an increase in the share of sales from the Sealy Posturepedic Reserve beds and “pricing actions” on the Sealy Posturepedic TrueForm mattresses.
“In 2007, we executed well on key strategies which we believe are going to be critical to our ongoing success, including driving unit volume and protecting valuable real estate on our retailers’ floors,” said David McIlquham, Sealy chairman and CEO. “However, it was a challenging year for Sealy as our fiscal 2007 financial results did not meet our expectations.”
He said a “difficult consumer spending environment” and commodity cost pressures are expected to continue for the next few quarters.
Domestic net sales rose by $26.8 million or 9.4% to $311.4 million on a 12.5 % increase in unit volume, offset by a 2.8% decrease in average unit selling price. The extra week in 2007 contributed $26.2 million in sales.
International sales increased $19.2 million or 17.3% to $129.9 million.
For the full year, sales rose 7.5% to $1.7 billion and earnings were up 7.3% to $79.4 million.
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Sealy 4Q sales rise
Feb 10, 2008
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