Sealy Corp Reports Narrower EPS Loss Than Expected, But Miss

March 29, 2011

Sealy Corp (NYSE:ZZ) reported a Q1 loss of $0.01 per share, a narrower loss than the $0.03 per share loss analysts expected. Revenue for the quarter was down 2% year-over-year to $305.5 million, below the consensus estimate for $326.1 million.Larry Rogers, President and CEO stated, "Our first quarter results were consistent with the expectations and objectives that we established as we entered the year, with overall revenues in-line with our Q1 internal plan. In addition, the first quarter results reflected the financial impact of the significant strategic investments in our product portfolio, as we launched the Next Generation Posturepedic line in late January 2011. We remain confident in our ability to execute our plan and expect the strategic investments made in the first half of 2011 to drive improved financial performance, with improving revenue growth in the second quarter, and gross margin and Adjusted EBITDA growth in the second half of 2011."