Despite the slump in the United States economy, Tempur-Pedic, the largest manufacturer of upscale mattresses announced that they have sold more products last year through their retail networks around the world.
According to the company, sales increased by 13 percent during the last quarter of 2007. Sales, according to the company reached $289 million for the said period last year. During the last quarter of 2006, the company reported net sale reaching $256.6 million.
For the whole year of 2007, the company reported net sale of $1.107 billion. That figure is 17 percent better than their net sale for the entire 2006. This increase in net sale is given a boost in the increase of products sold outside the United States. Tempur-Pedic announced that their through retailer channels all over the world increased by 21 percent.
Tempur-Pedic president and chief executive officer H. Thomas Bryant said that the company is "pleased that we exceeded the goals we established at the beginning of the year".
"The company delivered growth across all product lines both domestically and abroad. In the retail channel, we substantially improved account productivity while expanding floor space. We introduced several new products around the world, which have been received very positively. And, most important to our long term objectives, we improved brand awareness, increased market share and expanded capacity by opening the world's largest mattress factory," said Bryant, highlighting the different areas where the company has succeeded in last year.
"In addition, we maintained the profitability of the business while absorbing the increased cost of starting up our Albuquerque manufacturing facility," he added. The company's line of products are being manufactured and distributed by the company in many countries worldwide. Their line of products though does not include other home furniture like dining room chairs.
Bryant also pointed out that the company has overcome the slump during the last quarter of the year. "In the fourth quarter, despite a slowing macro environment, Tempur-Pedic achieved double digit retail sales growth driven by solid mattress sales growth," he said. "Gross profit margin trended to the highest quarterly level of the year, although channel and product mix modestly impacted it relative to our prior expectations."
The CEO though said that they have mixed feelings for this year. As they have posted a very strong showing last year, they are confident that they would be able to do the same this year. But at the same time, the company is also worried about the economic slump in the United States.
"We approach 2008 with confidence, yet a degree of caution as a result of the uncertainty in the U.S. economy. Given this uncertainty, we believe it is prudent to plan more conservatively in terms of 2008 sales growth," said Bryant.
"In 2008, our aim is to build on the progress made in 2007. We will continue our efforts to expand market share around the world driven by growing brand awareness. We plan to accomplish this by continuing to implement our advertising campaign in the U.S. and introduce it into international markets. We will also focus on expanding floor space as this is a key driver of market share," he added.
Author Resource:-
Chad Isenberg is an antique collector. This 33-year old is based in the Midwest constantly on the road looking for antiques. He is also venturing on his own furniture business. On his free time, he can be found designing new furniture/fixtures.
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