Sealy's Rogers sees some good news
The bedding industry, hit hard by a sales slowdown, is looking for some good news. And Sealy CEO Larry Rogers sees some in the company’s latest quarterly report.
Bedding’s largest producer was able to post a modest profit (net income was $4.7 million) and to “substantially improve” its operating performance, despite a difficult retail climate in the U.S. and around the world, Rogers said. Gross margins improved, the company generated significant cash flow over the past 12 months, and it reduced its net debt by $64 million, Sealy reported.
There is still more work to be done, obviously. Sales were down about 20% in the last quarter and debt net of cash stood at $731.7 million as of March 1. But Rogers said that Sealy remains tightly focused on improving those parts of its business that it can control, including further reducing expenses, providing customers with value-oriented Sealy products to meet current retail needs, and ensuring a strong launch of the much-acclaimed new Stearns & Foster line.
Rogers exemplifies the focused approach that Sealy is taking to its business. It was clear, when I sat down with him during the recent High Point Market, that he knows exactly what he is doing and he knows what Sealy has to do to navigate these tough times. He has a firm grasp on a broad range of economic and industry trends and issues.
Sealy will take further measures to improve its profitability through market share gains, improving gross margins, reducing expenses and maximizing its financial flexibility, the company says. That’s part of the playbook that Larry Rogers is methodically executing in a very tough market.
former mattress guy commented:
Hail Sealy
Lets see how aggressively they go after market share especially in light of the Spring Air news. Are current Sealy dealers protected? You can bet Not if they are 90+ days out on AP, which I understand a lot of Retailers are pushing these days!
The Spring Air Fiasco gives Simmons and Serta Great opportunity to close the gap. Whats up Serta and Simmons, can you answer the bell or is it business as usual.
This will be an interesting summer leading into September Market.
Maybe mattress retailing as we know it will end and the big S's will be left with the Big Box guys they are pushing to save their backsides!
I am just waiting for the day that the Dollar Store has a$1.00 Queen Firm Mattress!
The Mattress guys need to get back to the fundamentals that made the industry go from a sleepy business to a multi billion dollar biz. Entrepeneurs! That is what made the business, so quit supporting the Big Box theory and start supporting new trends in sleep shops. Quit chasing specialty biz when you could be developing your own innerspring niche!
Lets sell some beds, huh?
David Perry commented:
Dear Just Wondering: The situations at Sealy and Spring Air are so different that those companies don't even belong in the same sentence. As for this blog, I'm reporting on what the CEO thinks, and I'm offering my opinion that he knows what he is doing. I stand by that opinion.-David
just wondering commented:
David, isn't this what you were saying about Spring Air a short while ago?
just wondering commented:
David, isn't this what you were saying about Spring Air a short while ago?
anonymous commented:
Congratulations Larry. I'm just making sure you are aware that there is some excellent sales and operations talent available due to the events of last week that can help Sealy achieve those goals
