Tempur-Pedic International Inc. said Thursday that sales and net income increased during the third quarter of 2011 over the same period last year.
The Lexington-based manufacturer of premium mattresses and pillows generally waits to announce financial reports until after the markets close for the day.
Net sales increased 30 percent to $383.1 million in the third quarter, up from $295.8 million in the same period of 2010. Net income was $61.9 million in the third quarter of 2011, compared with $44.2 million in the third quarter of 2010.
"We are pleased with our third quarter results globally," said CEO Mark Sarvary. "Our strategic investments in brand awareness and new products continue to deliver growth."
Chief financial officer Dale Williams said that gross margins declined this quarter primarily due to "a transitory productivity issue" at the company's Danish manufacturing facility.
The company said during a conference call Thursday afternoon that it did not expect the Danish inventory situation to affect 2012 results. Although the field for memory foam and other premium mattresses is becoming increasingly competitive, the company anticipates continued growth for Tempur-Pedic because of its investment in materials and technology development and because of increasing sales of its pillows.
Tempur-Pedic also said Thursday that its board of directors has expanded its existing stock repurchase program by $80 million for a total authorization of up to $280 million in share repurchases.
The company said in a release that it expects net sales for 2011 to range from $1.405 billion to $1.425 billion and earnings per share to range from $3.12 to $3.17 per diluted share.