LEXINGTON, Ky., Sept. 14, 2020 /PRNewswire/ -- Tempur Sealy
International, Inc. (NYSE: TPX, "Company") today announced that
quarter-to-date order trends have improved from previous
expectations and the Company now estimates total third quarter net
sales to grow more than 30% compared to prior year. The change in
expectation was primarily driven by improving order trends on U.S.
Tempur-Pedic products. The Company continues to experience capacity
constraints for U.S. Sealy products, including supply chain
limitations outside the Company's control. The Company is working
closely with suppliers to find solutions for component shortfalls
to support the elevated U.S. Sealy demand.
Tempur Sealy Chairman and CEO Scott Thompson stated,
"Over the last five years, we have made tremendous progress in
strengthening the foundation of our Company. The strong foundation
we have in place with our brands, products, operations and people
have positioned us well to capitalize on industry growth for years
to come."
Thompson continued, "We continue to see strong growth that is
broad-based across geographies and channels. Tempur-Pedic branded
products are now growing materially higher than the growth on Sealy
products in the U.S. which has raised our profit expectations for
the quarter. Free cash flow has also been strong and our confidence
in positive industry trends has increased. Accordingly, in
September, we are using operating cash flow to repay the
$200 million 364-day incremental Term
Loan we closed in the second quarter. This repayment will remove
certain restrictions on share repurchases and dividends and result
in an annual interest saving of approximately $5 million. Additionally, with this improved
outlook, we expect to reach the higher end of the payout under our
long-term aspirational plan at the end of the third quarter."
The Company's Board of Directors has approved the early
termination of its shareholder rights plan (the "Rights Plan") to
now expire at the close of business on September 14, 2020. The limited duration Rights
Plan was adopted on March 27, 2020
with a previous expiration date of March 26,
2021. Shareholders are not required to take any action as a
result of this expiration.
The Company also announced Cliff
Buster will be promoted to the CEO of Tempur Sealy North
America effective January 1, 2021.
Buster has served as Executive Vice President, President U.S.
Direct to Consumer, and is on the Board of Directors of the
Company's highly successful Asian Joint Venture. He joined the
Company in 2017, leading the domestic direct-to-consumer business
from an almost standing start to a top 10 bedding retailer in the
U.S., and has previously held various executive operational and
financial management roles at Berkshire Hathaway Automotive, Inc.,
Dollar Thrifty Automotive Group and Group 1 Automotive, Inc.
Reporting to Buster in leading the North American operations
will be the current U.S., Canadian, and Mexican executive teams,
including Steve Rusing, Executive
Vice President, President, U.S. Sales, and Tom Murray, Executive Vice President, Chief
Marketing Officer, Marketing U.S.
Thompson said, "Cliff's intense focus on execution and fostering
a strong culture played a key role in the rapid and successful
expansion of our omni-channel strategy. Today's announcement
reflects the Board of Directors' continued actions to strengthen
our leadership bench and optimize our structure for continuing
growth. As I continue to serve in my role as Chairman of the Board
and CEO of Tempur Sealy International, Cliff's promotion will allow
me to spend more of my efforts on capital allocation, our
international operations and global strategy, while facilitating
the development of our leaders. This is consistent with our culture
and track record of internal promotions."
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", "estimates", "will" 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 sales and demand trends, performance generally for the
third quarter of 2020 and subsequent periods, the potential vesting
of the Company's long-term aspirational plan 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 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 the
macroeconomic environment in both the U.S. and internationally on
the Company's business segments; uncertainties arising from global
events; 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; and disruptions to the implementation of the Company's
strategic priorities and business plan caused by changes in its
executive management team. 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 June 30, 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) is the world's
largest bedding manufacturer. Tempur Sealy International, Inc.
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.