Tempur Sealy Shares Fall as Mattress Firm Cuts 2016 Outlook
September 27 2016 - 7:30PM
Dow Jones News
Tempur Sealy International Inc. shares fell after the mattress
company lowered its 2016 guidance, saying sales in the current
quarter have been weaker than expected.
The Lexington, Ky., company's shares dropped 24% to $56.29 in
recent after-hours trading.
Tempur Sealy reduced its 2016 outlook for adjusted earnings
before interest, taxes, depreciation and amortization by $25
million and now expected adjusted Ebidta of $500 million to $525
million. The company also projected a decline in net sales of
between 1% and 3% for the year, compared with its previous estimate
for net sales to increase in the low single digits.
Chairman and Chief Executive Scott Thompson, who have been
aiming to lower costs and boost margins at the company, said in
prepared remarks Tuesday that "while our net sales are below
expectations, our operational initiatives are going well and are
continuing to drive considerable margin expansion."
Mr. Thompson has been CEO for roughly a year and was brought in
by activist investor H Partners Management LLC, which—among other
things—had criticized Tempur Sealy for falling profit margins.
Tempur Sealy released its updated guidance ahead of a financial
conference Tuesday in Phoenix.
The company plans to release its third-quarter results on Oct.
27.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
September 27, 2016 19:15 ET (23:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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