The mattress business is huge. Many of the largest players in the game like Tempur Sealy see nearly a billion dollars in sales each year by themselves! Modern mattress brands such as Zinus, Nectar and Casper have all caught a lot of the spotlight in recent years—but it seems there’s still room for more traditional players yet.
A hard Days Work
You’ve been at the office all day, swamped with work, you’re on a diet, and your kids are unruly—this is the perfect formula for unchecked stress. Even the toughest of soldiers need somewhere to take a break, and many working adults in the United States look to their bed as being their last refuge. Regardless of the day, if one can manage a good night’s sleep it’s hard to complain too much. That’s where the popularity of mattresses finds its true power—in helping to keep the gears running smoothly. To get a better idea of just how many mattresses people are actually buying each year—consider the recent numbers of Tempur Sealy, as reported by The Lexington Herald:
Drop in the Bucket
Lexington-based mattress maker Tempur Sealy said Thursday that despite losing $145 million in sales in the second quarter, quarterly profits were up 15 percent.
Tempur Sealy reported second-quarter earnings of $24.5 million, up 15 percent over the same quarter of 2016. On a per share basis, the company reported earnings of 45 cents per diluted share, up 28.6 percent from the same quarter of the previous year.
For the first six months of the year, Tempur reported a loss of 4.1 percent, with earnings falling to $58.4 million. Earnings were up 8.1 percent per diluted share, to $1.07, for the first six months.
For the quarter, sales declined 18 percent to $659.3 million, due to the ending of the company’s relationship with its largest retailer, Mattress Firm. But Tempur Sealy has recaptured some of the lost sales: in the same quarter of 2016, sales to Mattress Firm were $191.4 million; in the second quarter of 2017, they were $1.2 million.
But Tempur said sales in North America outside of Mattress Firm were up 10 percent, with growth across all brands.
For the first six months of the year, overall sales are down 9.4 percent to $1.38 billion, from $1.53 billion last year.
“While worldwide industry trends continue to be a bit sluggish, we have outperformed our expectations and are raising the midpoint of our 2017 financial guidance,” said Tempur Sealy International Inc. Chairman and CEO Scott Thompson in a statement.