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    Tempur Sealy remains in ‘power position’ in bedding market

    Time:2019-08-12 12:51:04    Share:

    Tempur Sealy International remains in the “power position” in the bedding marketplace, an analyst firm says in its report on the recent Las Vegas Market.

    Piper Jaffray shared its thoughts after meeting with a number of bedding producers at the market. It said Tempur Sealy is “firing on all cylinders.”

    “Within the bedding space, we remain most enthused on Tempur Sealy following meetings at Las Vegas Market,” the company said in its report. “Thematically for the industry, what is most interesting is the blurring of lines between traditional brands and newer (i.e. digitally native) brands. Traditional brands such as Tempur Sealy and Serta Simmons Bedding are ramping DTC sales, and some digitally native brands are ramping a wholesale effort.

    “While SSB is working on a turnaround with new leadership, Tempur Sealy remains in the power position given successful product launches, stable management, notable customer wins and a rapidly growing DTC effort,” the report continued. “Last, we continue to think the much anticipated anti-dumping duties on Chinese imports have largely become a non-event as production has ramped aggressively in other Asian countries.”

    The report said of SSB: “We were impressed with new SSB CEO David Swift and believe he is implementing sensible action plans to improve sales/margins over time. Given Mr. Swift comes from outside the industry and is rebuilding the management team, these turnaround initiatives could take time, and some may not work as well as planned. Separately, we thought the iComfort relaunch looked solid and should perform reasonably well at retail.”

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