LEXINGTON, Ky., May 28, 2020 /PRNewswire/ -- Tempur Sealy
International, Inc. (NYSE: TPX, "Company") today provided an update
on its second quarter performance. Quarter-to-date orders have
significantly improved and the Company now expects total second
quarter net sales to be down approximately 30% compared to the
prior year. This improvement in trends has been broad-based, driven
by continued robust growth from global e-commerce, the re-opening
of domestic retail stores, and positive trends in Asia and Northern
Europe.
In the U.S., the Memorial Day promotion is going well, and the
Company has implemented tools to further support third-party retail
store openings and restart industry growth. The Company recently
began offering its Clean Shop Promise™ protocol, which
is being broadly adopted to provide customers with a sense of
comfort as they return to shopping in stores. Additionally, the
Company significantly increased Tempur-Pedic brand advertising
spend in the U.S. for the second quarter versus prior expectations.
Since stores began reopening to consumers, early reports from
third-party retailers are encouraging, with most experiencing
historically strong closing rates on reduced floor traffic, in
addition to continued strength in e-commerce offerings.
Although the Company previously announced it expected an
unadjusted EBITDA loss for the second quarter, the Company now
expects to achieve at least breakeven unadjusted EBITDA for the
second quarter of 2020 due to the improved sales outlook.
Tempur Sealy Chairman and CEO Scott Thompson
commented, "Our success in mitigating the impact of the pandemic on
our operations quarter to date is a testament to the resiliency and
flexibility of our business model, the strength of our brands and
product offerings, and the dedication of our team. Despite
the challenges presented by COVID-19, we now believe we will report
at least breakeven unadjusted EBITDA for the second quarter. We are
very pleased with the progress made during this challenging period
to date, including the over 100% growth in our U.S. e-commerce
business. We will continue working to mitigate the COVID-19 impact
while optimizing our competitive position."
The Company noted its expectations are based on information
available at the time of this release, and are subject to changing
conditions, many of which are outside of the Company's control. The
Company also noted that it was providing this update due to the
unusual circumstances resulting from the COVID-19 pandemic and
related economic downturn. The Company is not adopting any policy
or practice of providing any mid-quarter updates on net sales,
EBITDA or other aspects of its financial performance or providing
net sales by month at any time.
Forward-Looking Statements
This press release may be deemed to include statements that are
"forward-looking" within the meaning of the federal securities
laws, which include information concerning one or more of the
Company's plans, objectives, goals, strategies, and other
information that is not historical information. When used in this
release, the words "expects", "believe" and variations of such
words or similar expressions are intended to identify such
statements. Any forward-looking statements contained herein are
based upon current expectations and beliefs and various
assumptions. These forward-looking statements include, without
limitation, statements relating to the Company's expectations
regarding net sales, EBITDA and performance generally for the
second quarter of 2020 and subsequent periods and the Company's
expectations for emerging from the market downturn. There can be no
assurance that the Company will realize these expectations or that
these beliefs will prove correct.
Numerous factors, many of which are beyond the Company's
control, could cause actual results to differ materially from any
that may be expressed herein as forward-looking statements. These
risk factors include the impact of the macroeconomic environment in
both the U.S. and internationally on the Company's business
segments; uncertainties arising from global events; risks
associated with the duration, scope and severity of COVID-19 and
its effects on the Company's business and operations, including the
disruption or delay of production and delivery of materials and
products in the Company's supply chain; the impact of travel bans,
work-from-home policies, or shelter-in-place orders; a temporary or
prolonged shutdown of manufacturing facilities or retail stores and
decreased retail traffic; the efficiency and effectiveness of the
Company's advertising campaigns and other marketing programs;
consumer acceptance of the Company's products; general economic,
financial and industry conditions, particularly conditions relating
to liquidity, financial performance and related credit issues
present in the retail sector; financial distress among the
Company's business partners, customers and competitors, and
financial solvency and related problems experienced by other market
participants, any of which may be amplified by the effects of
COVID-19. Other potential risk factors include the risk factors
discussed under the heading "Risk Factors" in Part I, ITEM 1A of
the Company's Annual Report on Form 10-K for the year
ended December 31, 2019 and in Part II, ITEM 1A of the
Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2020. There may be other
factors that may cause actual results to differ materially from the
forward-looking statements contained herein. The Company undertakes
no obligation to update any forward-looking statement contained
herein to reflect events or circumstances after the date on which
such statement is made.
About the Company
Tempur Sealy International, Inc. (NYSE: TPX) develops,
manufactures, and markets mattresses, foundations, pillows and
other products. The Company's products are sold worldwide
through third party retailers, its own stores, and online. The
Company's brand portfolio includes many highly recognized brands in
the industry, including Tempur®, Tempur-Pedic®, Sealy® featuring
Posturepedic® Technology, and Stearns & Foster®. World
headquarters for Tempur Sealy International is in Lexington, KY. For more information,
visit http://www.tempursealy.com or call
800-805-3635.
Investor Relations Contact
Aubrey Moore
Investor Relations
Tempur Sealy International, Inc.
800-805-3635
Investor.relations@tempursealy.com
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SOURCE Tempur Sealy International, Inc.