Lexington, Kentucky -- Mattress and pillow manufacturer Tempur-Pedic International has reported sales up by 43 percent in the first quarter of 2010 (Q1) to $253.9 million, compared to the same period last year. Net sales were up 57 percent domestically and up 24 percent in international markets, Tempur-Pedic said 20 April.
The company's global mattress sales were up by 42 percent in Q1 to $169 million, compared to Q1 2009, while pillow sales increased 33 percent globally to $31 million in Q1, compared to the same period last year.
"We are very pleased with our first quarter results -- we have increased sales and grown our market share while improving both our gross and operating margins. Our investments in marketing and research and development are driving our sales momentum and we believe they will continue to do so in the future," said Tempur-Pedic ceo, Mark Sarvary.
During Q1, Tempur-Pedic purchased 3.7 million shares of its common stock at an average price of $27.07 for a total cost of $100 million, the statement said, adding that the company's board has authorised a new share repurchase programme of up to an incremental $100 million.
"In addition to our increased financial guidance for 2010 we believe we are well positioned for substantial growth in sales, earnings and cash flow, with limited capital expenditures, over the next several years," said Tempur ceo, Dale Williams. "After considerable evaluation of our capital structure, we continue to view share repurchases as an excellent means to return value to shareholders over the long term," he added. (RD)
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