Tuesday, Sealy Corp. (ZZ), a various bedding products company, reported a loss for the second quarter from a profit last year, as revenues dropped year-on-year owing to the weak retail environment.
The Trinity, North Carolina-based Sealy posted a loss of $5.2 million or $0.06 per share for the second quarter, compared to net income of $12.0 million or $0.13 per share for the prior-year period.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the quarter included charges of $11.9 million net of tax or $0.13 per share related to the company's refinancing of its senior credit facility on May 29, 2009 and rights for Convertible Notes.
Quarterly net sales dipped to $298.5 million from $375.4 million in the same quarter of the prior year. The Street estimated revenues of $298.14 million for the quarter.
Total U.S. net sales were $222.5 million, down from $258.7 million a year earlier. Wholesale domestic net sales slipped to $217.9 million from $252.9 million in the year ago period, impacted negatively by a soft retail environment. In the U.S., average unit selling price decreased 0.7% and unit volume declined 13.2% on a year-over-year basis.
International net sales fell 34.9% to $76.0 million from the same period last year. Excluding the effects of currency fluctuation, net sales declined 22.2% from the second quarter of 2008. The decline was primarily due to the weak retail environment in Canada and Europe.
For the first half, Sealy reported a loss of $492 thousand or $0.01 per share, compared to a profit of $28.17 million or $0.31 per share in the corresponding period last year.
Net sales for the six months ended May 31, 2009 declined 20.7% to $608.43 million from $767.3 million a year earlier.
Looking ahead, Larry Rogers, Sealy's president and chief executive officer, said, "While we expect market conditions to remain challenging, we will continue to take measures to improve our profitability through increasing collaboration with our retailer and supplier partners and the introduction of new products, while aggressively right-sizing our cost structure and maximizing our cash flow."
ZZ closed Tuesday's trading at $1.96, unchanged from its previous closing. In the after hours, however, shares gained $0.01 or 0.51% and traded at $1.97.
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