Global mattress giant Tempur Sealy International has warned that its third quarter sales are ‘below prior expectations’ as well as confirming that its full year sales will be ‘down’.
Tempur Sealy, which will officially release its Q3 trading figures on 27 October 2016, revealed that it expects current net sales for the year to be lower by 1 to 3% compared to 2015, largely due to ‘changing conditions’, whilst Adjusted EBITDA to range from $500m to $525m, lowering its guidance by 5%.
Scott Thompson, Tempur Sealy International, Inc. chairman and CEO, said: “While our net sales are below expectations, our operational initiatives are going well and are continuing to drive considerable margin expansion. The net impact of the revenue shortfall and our continued margin expansion is that we felt it was appropriate to lower the midpoint of our adjusted EBITDA guidance.
“The midpoint of this updated guidance implies an increase in adjusted EBITDA of approximately 12% and approximately 20% growth in adjusted earnings per share compared to 2015.”
The guidance update follows a record second quarter as net sales increased by 5.2% to $804m posted back in August, with the revelation potentially set to slow a fourth consecutive quarter-to-quarter growth run.