Bloomberg News

Tempur-Pedic and Select Comfort Gain on Mattress Growth

May 25, 2012

Mattress makers Tempur-Pedic International Inc. (TPX:US) and Select Comfort Corp. (SCSS:US) gained after an analyst at Piper Jaffray Cos. said sales advanced in April.

Tempur-Pedic, a luxury mattress maker based in Lexington, Kentucky, rose (TPX:US) 4 percent to $48.97 at the close in New York. Select Comfort, the maker of Sleep Number beds, advanced (SCSS:US) 5.5 percent to $28.04, the biggest gain since Dec. 20.

Wholesale mattress sales rose 15 percent in April from a year earlier, compared with a 4 percent gain in March, Peter Keith, an analyst with Piper Jaffray in New York, wrote in a note to investors today, citing data from the International Sleep Products Association.

“The strong April number validates that industry sales trends continue to be strong,” Keith said. “The mattress industry cycle remains intact and this implies strong results early in the quarter.”

Keith has an overweight recommendation on Minneapolis-based Select Comfort and Tempur-Pedic, the equivalent of a buy rating.

Both companies have been increasing revenue as the U.S. housing market recovers. Tempur-Pedic boosted sales (TPX:US) 28 percent to $1.4 billion last year while Select Comfort’s revenue (SCSS:US) rose 23 percent to $743.2 million.

Mattress sales gained as the U.S. housing market improved last month. Housing starts rose 2.6 percent to a 717,000 annual rate from March’s revised 699,000 pace, the Commerce Department said last week. Construction of single-family houses climbed 2.3 percent in April to a three-month high while work on multifamily homes, such as townhouses and apartment buildings, increased 3.2 percent.

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • TPX
    (Tempur Sealy International Inc)
    • $60.8 USD
    • -0.01
    • -0.02%
  • SCSS
    (Select Comfort Corp)
    • $19.79 USD
    • -0.06
    • -0.3%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus