Simmons sales up 19.9% in fourth quarter
Larry Thomas -- Kids Today, 3/12/2008 11:53:00 AM
Despite a tough retail business climate, bedding major Simmons reported double-digit sales increases for both the fourth quarter and the full year in 2007.
The company said fourth quarter sales were up 19.9% to $269.6 million, while sales for all of 2007 jumped 17.2% to $1.13 billion.
Domestically, sales were 12.8% ahead of last year’s fourth quarter, totaling $239.2 million.
For the full year, domestic sales topped $1 billion for the first time, totaling $1.002 billion in 2007. That was 11.4% ahead of 2006.
“During the year, we gained considerable market share, and the fourth quarter was the eighth consecutive quarter that our sales growth exceeded the growth rate for the industry,” said Charlie Eitel, chairman and CEO.
Fourth quarter net income came to $6.2 million, compared with a net loss of $2.8 million in last year’s fourth quarter.
For all of 2007, net income was $24 million. That compares with $47.6 million in 2006, a figure that included a one-time gain of $43.3 million on the sale of the company’s Sleep Country USA retail chain.
Eitel said he doesn’t see any short term improvement in the business climate, but he believes Simmons can maintain its growth pace.
“We believe our sales momentum, strong product offerings and keen focus on cost management put us in a position to be successful — despite a soft economy and higher raw materials costs,” he said.
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