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Investing.com – Tempur Sealy stock (NYSE:TPX) plunged 17% Tuesday after the mattress-maker’s fourth-quarter revenue and profit fell short of estimates.
Net sales in the fourth quarter rose 29%, to $1.36 billion, making it the tenth of its last 11 quarters of double-digit sales growth.
Margins fell due to Covid-related costs and the acquisition of Dreams, a specialty bed retailer in the U.K. Tempur said Dreams’ margin profile is lower than its historical international margins as it sells a variety of products across a range of price points. The purchase also boosted international sales which rose 82% to $298 million.
North America sales rose 19% to top $1 billion. Broad-based demand across its retail partners led to an increase in wholesale channel sales. Direct channel sales also rose because of growth in the company’s owned stores.
For the current year, Tempur expects profit per share between $3.65 and $3.85 on sales growth of 15% to 20%. Net sales in 2021 were $4.93 billion.
Profit per share in the fourth quarter was up over 31%, at 88 cents, but fell short of estimates.
