Piper Jaffray Comments on April Sales Data for Mattress Industry
Piper Jaffray has published a research report commenting on April sales data for the mattress industry, including Select Comfort (NASDAQ: SCSS), Tempur-Pedic International (NYSE: TPX) and Sealy (NYSE: ZZ).
In the report, Piper Jaffray writes, "April sales data for the mattress industry (mattresses & foundations) released this morning by ISPA shows a healthy bounce-back from the March results. April sales were +14.5% y/y (vs. March at +4%). Unit sales were +5.4% y/y (vs. March at -4.1%), and Average Unit Price at +8.7% remained consistent with prior months, reflecting the current strength in the specialty/premium segment of the marketplace. We believe the April data confirms that the mattress industry remains in a strong growth cycle. Furthermore, it suggests the weak March results were an aberration, likely impacted by very tough compares from 2011 and 2012. We believe the recent sell-off in SCSS and TPX shares represents an excellent buying opportunity for two companies with sustainable +20% earnings growth."
Piper Jaffray maintains its Overweight rating on TPX and SCSS, and is Neutral on ZZ.
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