Tempur Sealy Guidance Improves
Tempur Sealy guides Q3 net sales above consensus on improving order trends
Sep. 14, 2020 7:43 AM ET|By: Meghavi Singh, SA News Editor
Tempur Sealy announced expects Q3 net sales to increase 30% Y/Y primarily driven by improving order trends on U.S. Tempur-Pedic products. Consensus net sales are expected to increase 25.5% Y/Y.
“We continue to see strong growth that is broad-based across geographies and channels.
Free cash flow has also been strong and our confidence in positive industry trends has increased.
The company to use operating cash flow to repay the $200 million 364-day incremental term loan we closed in the second quarter, thereby removing certain restrictions on share repurchases and dividends and result in an annual interest saving of approximately $5 million.
Additionally, with this improved outlook, we expect to reach the higher end of the payout under our long-term aspirational plan at the end of the third quarter,” says Chairman and CEO Scott Thompson.
Cliff Buster has been promoted to the CEO of Tempur Sealy North America effective January 1, 2021.
Board of Directors approved early termination of shareholder rights plan to expire at the close of business on September 14 from previous expiration date of March 26, 2021.
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