ATLANTA – Tempur-Pedic, which is launching a new product line next year, has had some big product wins over the years, but the new line is “not a sure thing,” an analyst says.
In releasing third quarter results last week, Tempur Sealy officials noted that a new Tempur-Pedic product line is coming next year, one that the company’s CEO predicted would be “exciting.”
Scott Thompson, Tempur Sealy’s CEO, said the new products, combined with new advertising, will give the company’s retailers “a competitive advantage” to boost their revenues and earnings.
Keith Hughes, an Atlanta-based analyst with SunTrust Robinson Humphrey, says Tempur-Pedic has a “long history of success” with new product launches, but noted that the new line is “not a sure thing.”
In a section of his report headed, “Complete relaunch of Tempur-Pedic coming; long history of success but not a sure thing,” Hughes wrote:
“Management announced a complete relaunch in 2018 of the Tempur-Pedic line in North America. The company has not yet released any details about the products, but noted this is the first new formulation of the Tempur material since 2010. Tempur-Pedic has had some of the biggest product launch wins the industry has ever seen in a business where product launches can move stocks (in both directions). We expect to see all of these products at the January trade show in Las Vegas which will be a must-see event for this industry.”