Net income down more than 70%
ARCHDALE, N.C. — Bedding major Sealy reported a profit of $4.75 million for the quarter ended March 1 as worldwide sales fell 20.9%.
The company, which produces the Sealy, Stearns & Foster and Bassett brands, said domestic sales were off 16.5% in units and dollars amid continued weak demand at retail.
“We maintained a tight focus on positively affecting the areas of our business that we can control, including further reducing expenses, providing customers with value-oriented Sealy products to address their current needs, and unveiling our new Stearns & Foster line,” said Larry Rogers, president and CEO.
Worldwide sales in the period, the first quarter of Sealy’s fiscal year, totaled $310 million. That’s down from $392 million in the quarter ended March 2, 2008.
Domestic sales of $231 million in the most recent quarter were down from $276.7 million a year earlier.
Rogers said Sealy “generated significant cash flow” during the quarter and was able pay down $64 million in debt.
“While we expect market conditions to remain difficult, we intend to continue to capitalize on our industry-leading position,” he said. “We are confident that we are well positioned with the most diversified range of product technologies and price points in the industry.”