3Q net sales to grow by more than 30%: Tempur Sealy

19 Sep '20

2 min read

Pic: Tempur Sealy

Tempur Sealy International recently announced that quarter-to-date order trends have improved from previous expectations and the company now estimates total third quarter net sales to grow by more than 30 per cent compared to the last year. The change in expectation was primarily driven by improving order trends on US Tempur-Pedic products.

Tempur-Pedic International, part of Tempur Sealy International, is a manufacturer and distributor of mattresses and pillows made from viscoelastic foam.

The company continues to experience capacity constraints for US Sealy products, including supply chain limitations outside the company's control, it said in a statement.

The company is working closely with suppliers to find solutions for component shortfalls to support the elevated US Sealy demand.

“…In September, we are using operating cash flow to repay the $200 million 364-day incremental term loan we closed in the second quarter. This repayment will remove certain restrictions on share repurchases and dividends and result in an annual interest saving of approximately $5 million. Additionally, with this improved outlook, we expect to reach the higher end of the payout under our long-term aspirational plan at the end of the third quarter," Tempur Sealy chairman and chief executive officer (CEO) Scott Thompson said.

The company's board of directors has approved the early termination of its shareholder rights plan to now expire on September 14. The limited duration rights plan was adopted on March 27 this year.

Cliff Buster will be promoted to the CEO of Tempur Sealy North America effective January 1, 2021.

Fibre2Fashion News Desk (DS)

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