Tempur-Pedic sales soar 43.5% in first quarter

Profits more than double to $33.1 million

Larry Thomas -- Furniture Today, April 21, 2010

LEXINGTON, Ky. — Bedding major Tempur-Pedic said first-quarter sales leaped 43.5% and profits more than doubled as the company's domestic and international mattress business got off to a roaring start in 2010.

The company also increased its sales and earnings projections for the year, and announced a new share repurchase program for up to $100 million worth of common stock.

"We are very pleased with our first quarter results," said CEO Mark Sarvary. "Our investments in marketing and research and development are driving our sales momentum and we believe they will continue to do so in the future."

Sales for the quarter ended March 31 totaled $253.9 million, up from $177.1 million in last year's first quarter.

Net income was $33.1 million, or 44 cents per share, in the most recent quarter. That's up from $13.3 million, or 18 cents per share, in the first quarter of 2009.

Domestic mattress sales, Tempur-Pedic's largest business segment, surged ahead 55% to $117.4 million.

The latest numbers far exceeded Wall Street estimates, and although they are compared with a weak first quarter of 2009, they topped the first quarter of 2008, when sales totaled $247.2 million and net income was $13.5 million.

The company is now projecting 2010 sales of $1.02 billion to $1.06 billion. That's up from last fall's estimate of $950 million to $970 million.

The new earnings estimate is $1.70 per share to $1.85 per share. That's up from the previous estimate of $1.40 to $1.50.