LEXINGTON, Ky., June 5, 2017 /PRNewswire/ -- Tempur Sealy
International, Inc. (NYSE: TPX) today provided an update to its
recent order trends in advance of upcoming investor meetings:
- Tempur Sealy North America orders in May
2017 increased approximately 15% compared to May 2016 excluding Mattress Firm
- Orders for Tempur-Pedic branded products in North America grew approximately 28% in
May 2017 compared to May 2016 excluding Mattress Firm
- For the first two months of the second quarter, in North America, orders for all brands increased
approximately 7% compared to 2016 excluding Mattress Firm
- North American orders were negatively impacted in April, and to
a lesser extent in May, 2017 by a large liquidation event of Tempur
Sealy branded inventory by Mattress Firm
- For the first two months of the second quarter, International
orders were approximately consistent with the corresponding 2016
period on a constant currency basis, reflecting some weakness in
the U.K. bedding market offset by strength in other markets; with
the negative impact of foreign exchange rates, International orders
were slightly down on a reported basis
Tempur Sealy International, Inc. Chairman and CEO Scott Thompson commented, "We are pleased with
our quarter to date orders. North
America orders were strong in May, and we experienced
acceleration in order trends leading up to and including the
Memorial Day weekend. Some
retailers reported their best Tempur-Pedic sales in their history
as they leaned into our Tempur-Pedic brand. These initial
results confirm the strength of our brands and our strategy to
significantly invest in direct advertising of our brands in support
of our authorized retailers as they drive share gains."
The Company noted its expectations are based on information
available at the time of this release, and are subject to changing
conditions, many of which are outside of the Company's control. The
Company also noted that it was providing this update in light of
the unusual circumstances resulting from the termination of the
relationship with Mattress Firm effective April 3, 2017, its significant anticipated impact
on the Company's net sales for 2017 and potential uncertainty for
investors relating to the Company's ability to recapture a
significant portion of these sales, and the pace of these efforts.
The Company is not adopting any policy or practice of providing any
mid-quarter updates on net sales or other aspects of its financial
performance or providing net sales by month at any time.
Forward-looking Statements
This press release contains
"forward-looking statements," within the meaning of the federal
securities laws, which include information that is not historical
information. When used in this release, the words "estimates,"
"expects," "guidance," "anticipates," "projects," "plans,"
"proposed," "intends," "believes," and variations of such words or
similar expressions are intended to identify forward-looking
statements. These forward-looking statements include, without
limitation, statements relating to the Company's expectations
regarding sales order trends, the ability to recapture sales, and
performance generally for 2017 and subsequent periods. All
forward-looking statements are based upon current expectations and
beliefs and various assumptions. There can be no assurance that the
Company will realize these expectations or that these beliefs will
prove correct.
Numerous factors, many of which are beyond the Company's
control, could cause actual results to differ materially from those
expressed as forward-looking statements. These risk factors include
risks associated with the termination of the Company's relationship
with Mattress Firm; risks associated with the Company's capital
structure and debt level; general economic, financial and industry
conditions, particularly in the retail sector, as well as consumer
confidence and the availability of consumer financing; changes in
product and channel mix and the impact on the Company's gross
margin; changes in interest rates; the impact of the macroeconomic
environment in both the U.S. and internationally on the Company's
business segments; uncertainties arising from global events; the
effects of changes in foreign exchange rates on the Company's
reported earnings; consumer acceptance of the Company's products;
industry competition; the efficiency and effectiveness of the
Company's advertising campaigns and other marketing programs; the
Company's ability to increase sales productivity within existing
retail accounts and to further penetrate the Company's retail
channel, including the timing of opening or expanding within large
retail accounts and the timing and success of product launches; the
effects of consolidation of retailers on revenues and costs;
changes in demand for the Company's products by significant
retailer customers; the Company's ability to expand brand
awareness, distribution and new products; the Company's ability to
continuously improve and expand its product line, maintain
efficient, timely and cost-effective production and delivery of its
products, and manage its growth; the effects of strategic
investments on the Company's operations; changes in foreign tax
rates and changes in tax laws generally, including the ability to
utilize tax loss carry forwards; the outcome of various pending tax
audits or other tax, regulatory or investigation proceedings and
pending litigation; changing commodity costs; the effect of future
legislative or regulatory changes; and disruptions to the
implementation of the Company's strategic priorities and business
plan caused by abrupt changes in the Company's senior management
team and Board of Directors.
Other potential risk factors include the risk factors discussed
under the heading "Risk Factors" under ITEM 1A of Part 1 of the
Company's Annual Report on Form 10-K for the year ended
December 31, 2016. There may be other
factors that may cause the Company's actual results to differ
materially from the forward-looking statements. The Company
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which such
statement is made.
About the Company
Tempur Sealy International, Inc. (NYSE: TPX) develops,
manufactures, and markets mattresses, foundations, pillows and
other products. The Company's products are sold worldwide
through third party retailers, its own stores, and online. The
Company's brand portfolio includes many highly recognized brands in
the industry, including Tempur®, Tempur-Pedic®, Sealy® featuring
Posturepedic® Technology, and Stearns & Foster®. World
headquarters for Tempur Sealy International is in Lexington, KY. For more information,
visit http://www.tempursealy.com or call
800-805-3635.
Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com
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SOURCE Tempur Sealy International, Inc.