By Alan Wolf, YSN
Tempur Sealy plans to increase its U.S. pouring capacity for Tempur material and base foam by approximately 50 percent over the next three years.
The buildout, which comes amid industrywide shortages, will be fueled by an incremental $150 million capital investment through 2023. According to chairman/CEO Scott Thompson, plans call for the mattress maker to expand its three domestic foam facilities and to open a new state-of-the-art foam plant.
Thompson also reported improved fourth-quarter profitability amid stronger-than-expected U.S. e-commerce and international sales, with the company’s direct-to-consumer Tempur-Pedic and Cocoon by Sealy businesses enjoying triple-digit sales growth online.
Anticipated earnings before interest, taxes, depreciation and amortization (EBITDA) are up about 30 percent year over year on low double-digit net sales gains, he noted, despite greater-than-expected supply constraints that impacted U.S. Sealy and Sherwood production.
“Our commitment to serving consumers wherever and however they want to shop with the highest quality products and service has fueled strong demand for our industry leading Tempur-Pedic and Sealy brands and our rapidly growing OEM business,” Thompson shared in one of his regular market updates. “We expect the industry, and specifically the company’s business, to continue to expand. The new capacity will ensure that we can fully meet the consumer’s demand for our products across the multitude of channels we serve: wholesale, direct to consumer, and OEM.”