Sealy sales push up Tempur-Pedic's quarterly revenue
(Reuters) - Mattress maker Tempur-Pedic International Inc's (TPX.N) first-quarter sales rose 1.5 percent, helped by the inclusion sales at recently acquired Sealy Corp, and the company raised its outlook.
Shares of Tempur-Pedic rose 2.5 percent in after-market trade. They have jumped 55 percent since it announced its Sealy acquisition in September.
Buying Sealy, the long-time industry leader, has brought expertise and strong brands to Tempur-Pedic, including Sealy Posturepedic and Stearns & Foster, and helped the mattress maker recapture lost market share.
Tempur-Pedic completed the purchase on March 18 and its quarterly sales of $390.1 million included $46.7 million from Sealy.
The company raised its full-year earnings guidance to $2.75 per share on revenue of $2.5 billion from $2.55 per share on $1.4 billion, taking into account its acquisition of Sealy.
Wedbush analyst Joan Storms, who has a neutral rating on the company's stock said in a pre-earnings note dated April 25 that the acquisition of Sealy will help Tempur compete across all major mattress product categories including foam, air, innerspring, hybrid, and latex and price points.
International sales rose 1.8 percent to $117.5 million, contributing about 30 percent to the company's revenue.
Tempur-Pedic's net income fell to $12.5 million, or 20 cents per share, in the quarter ended March 31, from $56.2 million, or 86 cents per share, a year earlier.
Excluding integration costs related to the acquisition and certain tax items, the company earned 62 cents per share.
(Reporting by Aditi Shrivastava in Bangalore; Editing by Maju Samuel)
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