Any Bounce Left in the Mattress Market?
Chief Executive Lawrence Rogers said the company was boosted by the successful rollout of its new Stearns & Foster line and its initiatives to grow market share.
High-end beds have been a hot topic of late, as bedmakers have tried to buck the recession by appealing to higher-end audience with gadgets such as TVs and built-in fridges.
Mattress makers have struggled amid the housing crisis since late 2007, but the nearly 8% decline in industry-wide shipments in August is the smallest year-over-year decline so far this year, according to the International Sleep Products Association. Analysts have said mattress demand may have bottomed.
The stock, which had traded as low as 43 cents this past spring, hit $3.70 after hours, an increase of nearly 900%.
Mattress rivals Serta and Simmons were brought together in a buyout just this past week, so we'll have to keep a wakeful eye on the bedmaker market.