Lexington, Kentucky – Mattress and bedding manufacturer Tempur Sealy has upgraded its forecast for the second quarter.
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The company now estimates that total second-quarter net sales will be down only 15% compared to the prior year. ‘Strong sales in May and early June are mitigating a very difficult April,' it said.
The company added that the improvement is broad-based geographically, with sales from its wholesale channels doing well. The stand-out is 125% growth from its e-commerce channels thus far in the quarter.
It expects second-quarter EBITDA to reach at least $50 m.
Chairman Scott Thompson said: 'There is no question that post-April order trends have been strong. Internationally, trends have improved as a majority of her markets have returned to growth.
'In the US, we have bought back almost all plant employees to service the current demand. The rapid change in market conditions has resulted in some short-term inefficiencies, but we believe these are manageable compared to the difficulties faced from the significant sales declines in April.'
This is the company's second positive trading statement in as many months. At the end of May, it was forecasting second-quarter sales would be down 30%, and that it would break even at the EBITDA level.
In its first-quarter report at the start of May, Tempur predicted that second-quarter sales could fall by 55%, and that it was going to make a loss in the quarter.
