Tempur Sealy: Improved sales trends and acquisition of Dreams
Tempur Sealy International, Inc. has provided an update on its targeted second quarter sales performance. According to a statement released on 27 May the company’s quarter-to-date orders have accelerated since the first quarter earnings call, and it now targets total second quarter net sales growth of approximately 60 % as compared to the second quarter of 2019. The second quarter of 2019 was unaffected by COVID-19-related shutdowns at retail and provides a more meaningful comparison than the second quarter of 2020. The improved outlook has been driven by growth in demand for Tempur-Pedic products in the U.S., which are higher margin than the Company's average. The company expects to update full year sales and EPS guidance when it reports second quarter 2021 financial results.
Additionally, Tempur Sealy noted that while the availability of chemical and foam supplies in the U.S. has improved in-line with previously communicated expectations, demand for bedding products has accelerated further, resulting in growth in the company's backlog during the second quarter.
Tempur Sealy Chairman and CEO Scott Thompson commented, "Consumer demand for our global brands and products is very strong and broad-based. This improved demand outlook is likely to result in some supply constraints and plant inefficiencies into the third quarter. In order to mitigate what we believe are industry-wide constraints and reduce complexity for retailers during this period, we have elected to delay a portion of our new Sealy U.S. product launch to allow our operations to focus on producing current products to meet this elevated demand. This is in an effort to simplify inventory management for retailers, at a time when the industry is having difficulty meeting robust customer demand. We believe this will result in higher-quality customer experiences and shorter order-to-deliver times."
Additionally, the company announced that it has reached an agreement to acquire Dreams, a leading specialty bed retailer in the United Kingdom. Once closed, the transaction is expected to accelerate the company's growth in the largest European bedding market and the sixth largest economy in the world.