Lexington-based Tempur-Pedic announced this week that it intends to more than double its sales in the next five years to achieve $3 billion in annual revenue.
The goal comes after the company recently announced record fourth-quarter and annual earnings for 2011 and also unveiled a new lower-priced mattress line.
The $3 billion initiative follows one announced in 2009 to grow, among other things, to $2 billion in sales by 2014.
"We have found that setting a five-year goal sets very well for us," chief executive Mark Sarvary told investors during a conference call Wednesday. "We're well on our path to the 2014 goal and now we're setting this $3 billion 2016 goal.
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"That will move us from being the most highly recommended bed in America, we hope, to the most highly recommended bed in the world. So, nothing if not ambitious."
Driving that goal will be the new Simplicity line priced at $1,499. The company unveiled it recently at a Las Vegas trade show.
"We know there's a lot of consumers who are interested in Tempur products but can't afford them," chief financial officer Dale Williams told the Herald-Leader, noting the company primarily prices its products at $2,000 and up. "Simplicity makes Tempur a little more affordable to a broader array of consumers."
"Simplicity puts us right in the middle price point of a market that's as big as the market we already play in. Essentially, it doubles our potential market."
Sarvary said the company has the manufacturing capacity to more than double sales, as its factories in New Mexico, Virginia and Denmark operate at about 50 percent capacity. Specifically, the New Mexico plant could be expanded at a nominal cost.
The company also continues to build its larger headquarters at Coldstream Research Campus in Lexington. Last year, the company said it expected to add 65 jobs in five years there. Williams said even more are possible, as the company has added a fourth floor to the building.
"We're building it large enough to grow actually more than what was part of the original proposal," he said.