Lexington, Kentucky -- Tempur-Pedic International Inc. has reported increased sales for a second consecutive quarter, a 20 July company statement said. The rise puts the Kentucky-based mattress and pillow manufacturer on course for full year net sales ofbetween $1060 - $1100 million.
The firm reported sales up 42 percent to $263 million for the quarter ended 30 June 2010 (Q2), compared to the same period last year, while earnings per share more than doubled, rising 109 percent to $0.46. This latest rise comes on top of a 43-percent increase in sales in the first quarter of 2010, Tempur-Pedic reported.
Globally, mattress sales were up 44 percent, pillow sales increased 16 percent and sales of other products increased by 53 percent. Net sales in the North American segment increased 59 percent and international sales increased by 10 percent, the company added.
Gross profit margin was 48.7 percent in Q2, compared to 46.6 percent in Q2 last year, and operating profit margin was up to 20.5 percent compared to 15.7 percent in the same periods.
"We are very pleased with the continued substantial growth in our North American business and we are also pleased with the improved performance of our international business," Tempur-Pedic ceo, Mark Sarvary, said in the statement.
"Our focus on improving gross margins and operating costs continues to be effective. Although the macroeconomic environment is still uncertain, we remain confident of the potential to significantly grow sales and earnings over the coming years. We will continue to invest in initiatives that will drive growth over the long term," he added.
Tempur-Pedic also said in the statement that its board of directors has authorised a new share repurchase programme of up to an incremental $100 million.
"As we require limited capital to support our growth initiatives, we continue to view share repurchases as an excellent means to return value to stockholders," said company cfo, Dale Williams. (RD)"
