Tempur Sealy, the makers of well-known high-end brand TempurPedic, is in a dangerous tailspin.
According to the recent earning reports, they expect the entire year of 2016 to be down 1% to 3% from 2015.
Even worse – their Earnings before Interest, Taxes, Depreciation and Amortization of $500 million is 5% lower than the company’s previous projections.
Scott Thompson, Tempur Sealy’s CEO says, “third quarter sales are below expectations.”
After the company had released these projections, the Tempur Sealy stock went into extreme free fall.
From a stable $74.45 to $56.44 per share.
Consumers mattress demands have not declined.
In fact, it’s moving the opposite direction.
So why is Tempur Sealy struggling with sales?
Final Thought – As consumers become more comfortable with the idea of shopping for a mattress online, we feel this will continue to cut into the traditional brick and mortar sales growth. Lower overhead with high-quality mattress should have companies like Mattress Firm and brands like TempurPedic need to think of ways to innovate the shopping experience.