Tempur-Pedic Shares Jump as Mattress Sales Rise
Tempur-Pedic International Inc. (TPX) shares rose 4 percent after a survey by the International Sleep Products Association reported U.S. sales for mattresses surged in April.
Lexington, Kentucky based Tempur-Pedic International, which got two thirds of its sales from mattresses in 2011, advanced $1.87 to $48.97 at 4:15 p.m. in New York. Rival Select Comfort Corp. (SCSS) of Plymouth, Minnesota increased $1.47 to $28.04.
Revenue for mattress producers rose 14.5 percent in April from a year earlier, association spokeswoman Karin Mahoney said in an interview. The surveyed companies accounted for 66 percent of the mattress units shipped, she said.
“The April data confirms that the mattress industry remains in a strong growth cycle,” Peter Keith, senior research analyst with Piper Jaffray & Co., said in a report. “This implies strong results early in the quarter” for the companies. Keith rates Tempur-Pedic and Select Comfort as “outperform.”
Mark A. Sarvary, chief executive officer of Tempur-Pedic, said in an April 19 conference call that the manufacturer was expecting increased demand this year from consumers. “We think that the industry is certainly back from doldrums that it’s been in,” he said.
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