Mattress Stocks Up
September 7, 2022
|11:45 AM | Tempur Sealy International, Inc. (TPX) | By: SA Editor Clark Schultz, SA News Editor|
|Mattress stocks rallied on Wednesday after channel checks from Wedbush Securities indicated that mattress sales trends were flat to up low-single-digits for late-August through Labor Day at brick-and-mortar locations. |
The pace of sales for the highest demand period of the year was noted to be a significant improvement from the low-double-digits declines for the Independence Day selling period and even the Memorial Day selling period.
Analyst Seth Basham: “We estimate year-over-year industry sales declines moderated following a difficult June comparison, going from HSD declines in June to -MSD in July and down low-to-mid single digits during August.”
Of note, high-end demand continues to outpace that of the broader industry and even improved somewhat in late summer as consumers returned from vacations. The trend appears very positive for Tempur-Sealy International (NYSE:TPX) and Sleep Number (SNBR), while the drop in demand for mid-priced bedding options is called a potential negative for Purple Innovation (PRPL).
Elsewhere on Wall Street, Truist Securities also pointed to strong Labor Day weekend sales for the mattress companies.
Shares of Sleep Number (SNBR) jumped 9.99% in late morning trading on Wednesday, while Tempur Sealy International (TPX) showed a 10.55% gain. Purple Innovation (PRPL) rallied 4.89% after the sector check from analysts.