Lexington, Kentucky – Tempur Sealy has uprated its sales forecast for the third quarter, and now believes they will be 30% higher than the quarter last year.
Tempur updates and uprates Q3 trading forecast
The company said it uprated its forecast because of improving order trends on US products. But it warned that it is suffering from capacity constraints for US Sealy products. '[These include] supply chain limitations outside the company's control,' it said.
CEO Scott Thomson said: 'Tempur-Pedic branded products are now growing materially faster than Sealy products in the US. This has raised our profit expectations for the quarter.'
He added that free cash flow has also been strong. 'Accordingly, in September we are using operating cash flow to repay the $200m, 364-day incremental loan we closed in the second quarter,' he said.
This will save the company around $5m in interest, the company said in a trading statement.