Furniture stocks aren't looking particularly hot after Tempur Sealy International Inc (NYSE: TPX) shocked the market with a guidance cut on Monday.
The maker of bedding products said after Tuesday's market close that its third-quarter net sales are tracking below prior
expectations and now expects its full-year sales to be down 1 to 3 percent on a year-over-year comparison. For the full year, the
company now expects its adjusted EBITDA to fall in a range of $500 to $525 million from a previous range of $525 to $550
million.
After a full day of trading on Wednesday, Tempur Sealy's stock plummeted 22.40 percent and closed the day at $57.77 after
trading as low as $56.00. The company's cautious guidance may have signaled to investors that the entire furniture space isn't
performing as expected, based on their stock performances.
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Other Names In The Space
For instance, shares of Select Comfort Corp. (NASDAQ: SCSS), perhaps Tempur Sealy's closest peer and manufacturer of beds and bedding
accessories, saw its shares fall more than 9 percent on Wednesday.
Leggett & Platt, Inc. (NYSE: LEG), a manufacturer of
engineered components including steel coiled bedsprings, saw its shares trade lower by more than 3 percent on Wednesday.
La-Z-Boy Incorporated (NYSE: LZB), a seller of
upholstery furniture products, saw its shares dip nearly 3 percent to close at $24.96 on Wednesday. However, the stock did perform
better than other furniture makers, such as Bassett Furniture Industries Inc. (NASDAQ: BSET) and Hooker Furniture Corporation (NASDAQ: HOFT), as both stocks declined nearly 5 percent.
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