Simmons sales slip 3.7% in quarter
Net income rises 20% to $1.2 million
Larry Thomas -- Furniture Today, August 5, 2008
ATLANTA — Bedding major Simmons Co. said its second-quarter sales slipped 3.7%, but net income rose 20% due to lower operating costs and interest expenses.
Sales for the quarter ended June 28 totaled $267.7 million, compared with $277.9 million in last year’s second quarter. Domestically, sales dropped 6.5% to $229.3 million.
The company said domestic sales were hurt by a 12.2% decline in units, but said it recorded a 7% jump in the average unit selling price.
Net income was $1.2 million in the most recent quarter, compared with $984,000 in the same period last year.
“The economic environment we operated in during the second quarter was very difficult because of reduced demand and increased costs,” said Charlie Eitel, chairman and CEO. “Despite the difficult environment, our products continue to be among the best performing at retail.”
Eitel said second-quarter results were affected by rising raw material and fuel costs, but those were partially offset by a variety of cost-cutting efforts and price increases.
For the first half of 2008, sales declined 0.1% to $544.6 million. Net income fell more than 31% to $3.7 million.
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