Lexington-based Tempur Sealy on Monday announced that its mattress sales are climbing back, even without their biggest North American seller.
On April 3, Tempur severed its relationship with Mattress Firm, which had been responsible about $700 million in annual Tempur Sealy sales. When news broke in January that the relationship would end, Tempur’s stock took a big hit. In March, the company said earnings are expected to be down 14 to 23 percent without Mattress Firm sales.
But this week Tempur Sealy International chairman and CEO Scott Thompson announced the results of May orders to reassure investors that other sellers are recapturing those sales. Thompson said that, excluding Mattress Firm’s sales, orders in North America were up 15 percent for May 2017 compared to last year, with orders for Tempur-Pedic branded products up 28 percent compared to the same month last year excluding Mattress Firm.
Orders in April were hurt by a Mattress Firm liquidation event, he said, but orders for the first two months of the second quarter for all brands were up about 7 percent compared to 2016, excluding the Mattress Firm 2016 sales figures. Last year Tempur Sealy had about $3.1 billion in global sales, including about 32 percent of the North American market.
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“The Tempur Sealy workforce has done great job stepping up to the challenges created by the termination of our largest customer and I could not be more proud of their performance and their results to date,” Thompson said.
The results released this week indicate that Memorial Day weekend was strong, particularly for Tempur-Pedic brands. The company does not expect to report more sales figures until the next quarterly results are released in July.