Tempur-Pedic growth hits wall, shares crash

(Reuters)-Tempur-
Peki International LimitedTPX. N)
On Wednesday, nearly half of the loss came after mattress manufacturers cut their full value.
Forecast this year and acknowledge that it is losing its edge quickly
It used to dominate competitors in the professional market.
In the past two years, the company\'s sales have increased by more than 27%, mainly due to the demand of the baby boomers who have been sold for the health benefits of TempurPedic’s high-priced foam-
And other special mattresses.
But Wednesday\'s forecasts suggest that competitors have finally learned to compete in the markets that the company has actually created and owned for most of the past 20 years.
In a statement, CEO Mark Sarvary said that with the support of active marketing and promotion, the number of competitors\' products was \"unprecedented\", which prompted sales to lose nearly $1.
5 billion of the company\'s market value.
\"Now, everyone in the industry is pursuing a professional field,\" Sarvary later said in a conference call with analysts . \".
\"We didn\'t expect the competitive environment to change so quickly. ”Tempur-
Now, Pedic expects sales to remain around $1.
2012 was $43 billion, down from $1 previously forecast. Between $6 billion and $1. 65 billion.
The company has warned that sales will slow in April, when it expects 2012 figures to fall below Wall Street\'s expectations.
However, Wednesday\'s cuts marked a more dramatic decline in the company, which has revolutionized the mattress industry with its foam
The technology was originally developed by NASA.
The professional market it helps create now accounts for more than 25% of all mattress sales.
The business is mainly responsible for the company from the privately held Serta Inc. and Simmons Bedding Company and for a long time
Short-term market leader Eli ZZ Corp.
N, all of these are most sold from traditional beds that contain spiral springs.
But since last year, both Simmons and Serta have successfully launched the bubble.
While Sealy has increased its presence in the market.
\"IComfort products of Serta (has)
Robert Strauss, an analyst at Guildford Securities, said: \"We have been developing momentum for the past 12 months, and there are other products that are growing now . \".
Increased marketing and promotional activities, including discounts and incentives for retailers, enable competitors to gain a foothold in the professional business, mainly at Tempur-
This is the expense of pedick, said Strauss.
Joseph altobeiro, an analyst at Oppenheimer, said this \"forced Tempur-
Pedic will rethink its marketing strategy, which may include stepping up promotions, \"lowering his rating of the stock from\" better performance \"to\" better performance \". ”Tempur-
Pedic said it would cut costs to protect profit margins and now expects revenue to hit $2.
$70 per share this year, down from $3 previously predicted. 80 to $3. 95.
On average, analysts expect,
Annual earnings of $3.
$93 per share with revenue of $1.
64 billion, according to Thomson Reuters I/B/E/S. Tempur-
Pedic shares, which traded up to $87 less than two months ago, closed down 49% on Wednesday to more than doubleThe annual low was $22.
On the New York Stock Exchange. Top Tempur-
According to Thomson Reuters, Pedic shareholders who were hit by the fall in share prices include mutual fund company Fidelity Management, Wellington Management and pioneer group, and hedge fund JAT Capital Management.
A selection of shares from SCSS\'s peer professional mattress manufacturers.
O fell 20% to close at $20. 61.
Retail mattress holding company
The main supplier is Tempur-
Pedic and Select Comfort also closed 21% after quarterly sales fell below market expectations.