Sealy finally triumphs

29 Jun

It was a rough year in the luxury bedding market.  With groups like Tempur-Pedic pushing hard into advertising and raw material costs rising it’s no wonder that Sealy Corp has been having a bit of a rough year.  But Sealy and KKR, the private equity firm who backs Sealy Corp and whose member Dean B. Nelson sits on their board, have reason to celebrate.

Why?  Well, according to their recent quarter report the company is doing better than before, to the tune of a profit of $1.86 million and wider margins.  Revenue has decreased a little, but higher pricing in the luxury mattress sales has evened things out- resulting in a 40.7% margin over a previous 38.9%.  And increased sales in Canada and Argentina have helped improved the overall numbers.

Given that analysts expected the company to merely break even this is all a happy surprise.


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