Photo: Flickr / Alan Stanton
Shares in premium mattress manufacturer Tempur-Pedic International are more than 42 per cent lower in pre-market trading after the company unexpectedly cut full-year guidance and lowered its revenue projections for the quarter. The company said it now expected second quarter revenue to fall 3 to 5 per cent from year-ago levels, with full year top line results to come in at about $1.43 billion.
Tempur-Pedic said earnings per share would be approximately $2.70 for the full year, more than 30 per cent below guidance it issued during the first quarter.
Sales have been weak in the company’s core North American operations as new competitors take share.
“In light of the current environment for North American sales, our guidance assumes that North American sales for the third and fourth quarters will each be approximately equal to the second quarter sales factoring in modest seasonality,” Chief Financial Officer Dale Williams said. “Our international business continues to perform well and we have made no substantive changes to our expectations for international sales.”