Tempur
The Future of Tempur Pedic
Tempur Pedic is the world’s largest bedding provider that manufactures and distributes various luxury products made of viscoelastic memory foam. The company was founded in 1992 by Fagerdala World Foams in Denmark. In the 1980s, Fagerdala acquired the formula to create a stable, durable and commercially viable product from the National Aeronautics and Space Administration (NASA). In the early 1970s, NASA had developed this pressure-absorbing material to help cushion and support astronauts during lift-off. Fagerdala spent years perfecting NASA’s process; once completed, their consumer version of the foam was given the name Tempur. The first product released by the company was the Tempur-Pedic Swedish Mattress in 1991. By 1992, company owner Dag Landvik began a partnership with Kentucky businessman Robert Trussell, Jr. to bring the brand to the United States. Today, the company is headquartered in Lexington, Kentucky. The most recent major development in the company was the acquisition of mattress competitor company Sealy in early 2013. The company sells in eighty countries many of the most highly recognized brands in the industry: Tempur, Tempur-Pedic, Sealy, Sealy Posturpedic, OptimumTM, and Stearns & Foster. According to Tempur Pedic’s first quarter results posted in March 2013, the company’s net sales are estimated at 2.5 billion dollars (Tempur Pedic Online, 2013). The company intends to change its corporate name to Tempur Sealy International, Inc. in June. Tempur Pedic is currently thriving in a troubled economy. Nonetheless, according to 2013’s first quarter financial summary, the company’s gross profit margin was 48.3%. Excluding Sealy, Tempur-Pedic gross profit margin decreased to 51.7% as compared to 53.6% in the first quarter of 2012. (“Tempur Pedic Reports First Quarter 2013 Results,” 2013). The Tempur-Pedic gross profit margin decreased primarily as a result of product mix, company debt, and increased advertisements and
Tempur Pedic is the world’s largest bedding provider that manufactures and distributes various luxury products made of viscoelastic memory foam. The company was founded in 1992 by Fagerdala World Foams in Denmark. In the 1980s, Fagerdala acquired the formula to create a stable, durable and commercially viable product from the National Aeronautics and Space Administration (NASA). In the early 1970s, NASA had developed this pressure-absorbing material to help cushion and support astronauts during lift-off. Fagerdala spent years perfecting NASA’s process; once completed, their consumer version of the foam was given the name Tempur. The first product released by the company was the Tempur-Pedic Swedish Mattress in 1991. By 1992, company owner Dag Landvik began a partnership with Kentucky businessman Robert Trussell, Jr. to bring the brand to the United States. Today, the company is headquartered in Lexington, Kentucky. The most recent major development in the company was the acquisition of mattress competitor company Sealy in early 2013. The company sells in eighty countries many of the most highly recognized brands in the industry: Tempur, Tempur-Pedic, Sealy, Sealy Posturpedic, OptimumTM, and Stearns & Foster. According to Tempur Pedic’s first quarter results posted in March 2013, the company’s net sales are estimated at 2.5 billion dollars (Tempur Pedic Online, 2013). The company intends to change its corporate name to Tempur Sealy International, Inc. in June. Tempur Pedic is currently thriving in a troubled economy. Nonetheless, according to 2013’s first quarter financial summary, the company’s gross profit margin was 48.3%. Excluding Sealy, Tempur-Pedic gross profit margin decreased to 51.7% as compared to 53.6% in the first quarter of 2012. (“Tempur Pedic Reports First Quarter 2013 Results,” 2013). The Tempur-Pedic gross profit margin decreased primarily as a result of product mix, company debt, and increased advertisements and
References: Tempur Pedic Online. (2013). Retrieved from http://www.tempurpedic.com “Tempur Pedic Reports First Quarter 2013 Results.” (2013). Retrieved from http://www.investor.tempurpedic.com/annuals.cfm