UPDATE 2-Tempur-Pedic cuts forecast as rivals grab market share
* Posts first quarterly loss
* Cuts FY EPS view to $2.55 from $2.80
* Cuts revenue view to $1.40 bln from $1.43 bln
* Shares down 18 percent after market (Adds analyst comment, details, updates share movement)
Oct 23 (Reuters) - Tempur-Pedic International Inc posted its first quarterly loss and cut its full-year forecast as the specialty mattress maker struggles to maintain market share against fast-growing rivals in the burgeoning market for foam mattresses.
The company's shares, which have lost 50 percent of their value in the past six months, fell more than 18 percent in extended trading.
Tempur-Pedic, which pioneered the specialty bed market with foam-based technology developed by NASA, has been struggling to win back customers from rivals such as Select Comfort and privately held Simmons Bedding Co and Serta Inc.
The company acquired market leader Sealy Corp last month to fend off smaller rivals, who have been launching new products and resorting to aggressive promotions.
"It is not so much the third-quarter performance, it's the outlook. In a word 'disappointing'," Stephens Inc analyst Eric Hollowaty of told Reuters.
Tempur said it expects a full-year profit of about $2.55 per share on revenue of about $1.40 billion, down from its previous forecast of $2.80 per share on revenue of $1.43 billion.
Analysts on average had expected a profit of $2.78 per share on revenue of $1.43 billion, according to Thomson Reuters I/B/E/S.
"Changes in the competitive environment that we experienced during the second quarter in North America continued to have an adverse impact on our third quarter performance," Chief Executive Officer Mark Sarvary said in a statement.
FIRST QUARTERLY LOSS
Tempur reported a third-quarter net loss of $2.0 million, or 3 cents per share, compared with a profit of $61.95 million, or 90 cents per share, a year earlier.
On an adjusted basis, the company posted a profit of 70 cents per share, beating analysts estimates by 1 cent.
Revenue fell 9 percent to $347.9 million.
Mattress sales in North America fell 15 percent, while overall sales fell 11 percent, the company said.
Shares of the Lexington, Kentucky-based fell to $26.00 after closing at $31.87 on Tuesday on the New York Stock Exchange. (Reporting by Aditi Shrivastava in Bangalore; Editing by Saumyadeb Chakrabarty)
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