Snoring is one of the two biggest problems preventing people from getting a good night’s sleep, according to Tempur Sealy International Inc. TPX, -1.83% from CEO Scott Thompson, and the mattress maker has moved to tackle the “damn serious” problem. The company has tackled the other problem, “sleeping warm,” with cooling technology built into some of its mattresses.
Snoring was addressed with the fourth-quarter launch of the TEMPUR-Ergo Smart Base with Sleeptracker-AI technology, a system equipped with sensors that can track things like heart and respiratory rates and respond by adjusting the sleeper’s position. Sleep data and tips are also sent to the owner’s smartphone. The mattress category has benefited from the consumer shift to household spending during COVID-19. Tempur Sealy reported better-than-expected fourth-quarter earnings, provided strong guidance for the full year of 2021, and increased its share buyback program on Thursday. Shares of Tempur Sealy are up 13.2% this week. Read: Bed Bath & Beyond, Lowe’s will suffer as COVID-related ‘nesting’ ends, analyst group says According to Thompson, who spoke to MarketWatch after the earnings call, Tempur Sealy had seen its sales increase even before COVID-19. During the pandemic, not only have people replaced their old mattresses, but younger consumers have moved from apartments to more permanent homes they bought, leading to increased spending on older furniture and household items. quality. Read more about the ‘Big Makeover’ taking over among millennials. Thompson says that consumers have been looking to replace “some entry-level imports, disposable beds, [that] they don’t have the durability of ‘traditional’ beds. “” I think there’s more neglect because those beds don’t hold up. “Plus: Bed Bath & Beyond gets more attractive with a little squeeze, says B. de A. Sure, a bed like TEMPUR-Ergo Smart Base with Sleeptracker-AI technology is an investment. That base can cost upwards of $ 3,000 depending on the size. Buying a mattress can cost as much or more. But consumers are concerned about health and well-being, and Tempur Sealy places sleep in that category. And while the sound of someone snoring like a circular saw can be the butt of many jokes, if you live in a house, or worse, sleep in the same room, with someone who snores Thompson said the problem could be “very serious.” Its newest product drove average sales price (ASP) growth in the fourth quarter, Thompson said. “Strong broad-based sales growth highlights the strength of Tempur Sealy’s portfolio of brands, its expanding omnichannel distribution model, as well as the benefit that the entire US bedding / furniture industry is at. gaining from a shift in consumer spending and a strong US housing environment, “Raymond James analysts wrote in a note. Raymond James rates a strong Tempur Sealy stock buy with a price target of $ 42, up from $ 32. “We believe strong new and used home sales may drive higher mattress purchases, and less competition from China and Asia. benefits Tempur Sealy with established US anti-dumping duties, ”wrote CFRA. CFRA calls Tempur Sealy stock a strong buy and raised its price target from $ 12 to $ 41. Don’t Miss: The ‘New Normal’ Is More Likely As Vaccine Acceptance And Stimulus Spending Increase – Data From Stifel “Tempur Sealy Is Not Only Benefiting From Industry Tailwinds But Also it is likely to gain significant market share with its industry-leading brands, superior supply chain capabilities and expanded advertising, ”Wedbush analysts wrote in a note. Wedbush rates Tempur Sealy stock performing better with a price target of $ 36, down from $ 32. Tempur Sealy stock closed Thursday at $ 32.18. It is up 36% over the past year, outperforming the benchmark S&P 500 SPX index, + 0.13%, which is almost 16% higher over the period. Thompson said on the call that feedback the company has received so far on the latest product has been positive. For anyone who snores, and for anyone who listens to it, that could be good news. “[Snoring] results in people sleeping in separate bedrooms. It results in a lot of partner kicking, ”he told MarketWatch.