Lexington, Kentucky - Premium mattress maker Tempur-Pedic International Inc. said net sales in 2012 fell 1 percent to $1402.9 million, and by 7 percent in the fourth quarter to $341.1 million. However, the company said it was "very confident" about returning to growth in 2013 with a series of new product introductions.
Operating income in 2012 was $248.3 million, 18 percent of the full year sales. Tempur's gross profit margin was 50.9 percent down from 52.4 percent in 2011, which the company said was partly due to increased promotions and discounts.
In the fourth quarter, the company's North American sales dropped 9 percent and 4 percent internationally. Mattress sales were down 5 percent globally and in North America; internationally mattresses were down 7 percent. Pillow sales dropped 8 percent globally in Q4: down significantly in North America (26 percent) but boosted by an 11-percent increase internationally.
2012 saw sales fall in North America by 4 percent, while the company's international business was up 6 percent. Tempur ceo Mark Sarvary said the company continues to see signs of stabilisation in the North American market driven by initiatives launched in the third quarter.
"Next week at the Las Vegas Market industry show, we will announce further initiatives including several new products that we believe will return Tempur-Pedic growth in North America in 2013," he said.
Sarvary added that the company's fourth-quarter results were consistent with recent projections but reflect "a softening in demand due to macroeconomic weakness in Europe is expected." He emphasised that the company was feeling positive about its new product introductions both in North America and internationally.
LMH
