Tempur-Pedic swings to loss; shares fall
(Reuters) - Tempur-Pedic International Inc (TPX.N) 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.
Shares of the company fell more than 15 percent in extended trading. They closed at $31.85 on Tuesday on the New York Stock Exchange.
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 (SCSS.O) and privately held Simmons Bedding Co and Serta Inc.
The company acquired market leader Sealy Corp ZZ.N last month to fend off smaller rivals, who have been innovating their products and resorting to aggressive promotions to lure customers.
Tempur now 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 expect a profit of $2.78 per share on revenue of $1.43 billion, according to Thomson Reuters I/B/E/S.
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.
(Reporting by Aditi Shrivastava in Bangalore; Editing by Saumyadeb Chakrabarty)