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Simmons Bedding's sales down 7.9% in Q1, 2005
16 May '05
5 min read
Atlanta based worlds largest & leading premium branded bedding manufacturer, Simmons Bedding Company announced operating results for the first quarter 2005 today.
Results for the Quarter Ended March 26, 2005
For the first quarter of 2005, net sales were $205.6 million compared to $223.3 million for the same period a year ago, a 7.9% decrease. Wholesale bedding segment net sales decreased 8.5% to $189.6 million for the first quarter of 2005 compared to $207.1 million for the same period a year ago.
Wholesale bedding segment net sales were primarily impacted by a 15.2% decrease in conventional bedding units shipped, partially offset by a 6.7% increase in conventional bedding average unit selling price, for the first quarter of 2005 compared to the first quarter of 2004.
Simmons' retail bedding segment net sales for the first quarter of 2005 decreased $6.0
million, or 23.8%, compared to the first quarter of 2005 due to the sale of the Company's Mattress Gallery retail operation in Southern California in May 2004. On a comparable store basis, Simmons' retail store sales increased 22.3% in the first quarter of 2005 compared to the similar period of 2004.
Gross margin for the first quarter of 2005 was 44.5%, a 1.8 percentage point decrease from the first quarter of 2004. Simmons' wholesale bedding segment gross margin for the first quarter of 2005 was 42.7%, compared to 46.0% for the first quarter of 2004.
The first quarter 2005 gross margin was negatively impacted by (i) an increase in conventional bedding material costs as a percent of net sales, due to inflation in prices of raw materials, exceeding growth in average unit selling prices; (ii) an increase in overhead costs as a percent of net sales, due principally to a decrease in unit volume versus 2005; and (iii) sales of juvenile bedding products, which sell at lower margins, as a result of the acquisition of certain assets of the crib mattress and related soft goods business of Simmons Juvenile Products Company, Inc. in August 2004.
Results for the Quarter Ended March 26, 2005
For the first quarter of 2005, net sales were $205.6 million compared to $223.3 million for the same period a year ago, a 7.9% decrease. Wholesale bedding segment net sales decreased 8.5% to $189.6 million for the first quarter of 2005 compared to $207.1 million for the same period a year ago.
Wholesale bedding segment net sales were primarily impacted by a 15.2% decrease in conventional bedding units shipped, partially offset by a 6.7% increase in conventional bedding average unit selling price, for the first quarter of 2005 compared to the first quarter of 2004.
Simmons' retail bedding segment net sales for the first quarter of 2005 decreased $6.0
million, or 23.8%, compared to the first quarter of 2005 due to the sale of the Company's Mattress Gallery retail operation in Southern California in May 2004. On a comparable store basis, Simmons' retail store sales increased 22.3% in the first quarter of 2005 compared to the similar period of 2004.
Gross margin for the first quarter of 2005 was 44.5%, a 1.8 percentage point decrease from the first quarter of 2004. Simmons' wholesale bedding segment gross margin for the first quarter of 2005 was 42.7%, compared to 46.0% for the first quarter of 2004.
The first quarter 2005 gross margin was negatively impacted by (i) an increase in conventional bedding material costs as a percent of net sales, due to inflation in prices of raw materials, exceeding growth in average unit selling prices; (ii) an increase in overhead costs as a percent of net sales, due principally to a decrease in unit volume versus 2005; and (iii) sales of juvenile bedding products, which sell at lower margins, as a result of the acquisition of certain assets of the crib mattress and related soft goods business of Simmons Juvenile Products Company, Inc. in August 2004.
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