July 22, 2009, 12:00 AM

Tempur-Pedic looks online to wake up sleepy sales

TempurPedic.com was recently redesigned with a cleaner layout, bigger images and more detailed product content. Tempur-Pedic also will continue to invest in its web channel to help prop up falling sales, CEO Mark Savary told Wall Street analysts.

Mark Brohan

Research Director

Bedding manufacturer and marketer Tempur-Pedic International Inc. is counting on a web site redesign and more online marketing to boost falling sales, the company is telling Wall Street analysts.

Tempur-Pedic, No. 206 in the Internet Retailer Top 500 Guide, recently redesigned TempurPedic.com with a cleaner layout, bigger images, more detailed product content and advanced rich media. In an effort to pump up sagging sales, the company also will direct more resources to its e-commerce channel, Tempur-Pedic CEO Mark Savary told analysts on its second quarter earnings call. “During the quarter we revamped our web site and increased our online marketing effort and we will continue to develop our online presence,” Savary told analysts. “We know that the majority of leads that become buyers come at retail and that almost all consumers are using the Internet to research their mattress purchase before they buy.”

Direct sales for Tempur-Pedic improved in the second quarter, though the company didn’t include specifics in its second quarter earnings release. “The direct business was up in the second quarter, which has not occurred in a long time,” Savary said. “Partly driving this growth has been a significant improvement in e-commerce sales and Internet-generated leads.”

Overall sales in the second quarter ended June 30 declined 22% to $185.2 million from $238.7 million in the second quarter of 2008. Net income fell 17% year over year to $16.9 million from $20.3 million. For the first two quarters, sales declined 25% to $362.3 million from $485.9 million in the prior year. Net income declined 11% to $30.2 million for the six months ended June 30 from $33.7 million in the previous year.

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