Tempur-Sealy has been very busy lately—but according to the brand’s CEO, they’ve not been busy considering a purchase of the boxed-bed brand Casper, a very popular and well known start-up that’s only recently, when considering an IPO, been shown to be losing and not gaining much money.
Tempur Sealy Is Not Buying Casper
According to the brand’s spokesperson, there has been some misreporting in the media around Casper’s attempt to go public and Tempur Sealy’s involvement, including a recent New York Post story. The company’s CEO, Scott Thompson wanted to establish the facts and clear any confusion around the rumor with the following statement:
“We have never discussed purchasing Casper. To be clear that means the board has never discussed purchasing Casper. That means I have never even thought about purchasing Casper. We have never discussed with Casper purchasing them. We have talked to them about buying Latex from us and in one of those meetings they let us know they would be happy to engage in a discussion to be purchased. We instantly declined to engage and said we had no interest. I believe this rumor is being used to try to create a perception that the money losing venture is valuable.”—Scott Thompson, CEO of Tempur-Sealy
So if the bedding giant has not been flirting with the idea of purchasing Casper, what has Tempur been up to lately?
First of all, the brand is looking to diversify its selling strategy by opening its first brick-and-mortar location in Manhattan. It has also been market testing its latest product and finally, investing quite a bit of time and money into social good initiatives with a generous donation and a rework of its corporate social values.
Direct Channel Expansion Update
Tempur Sealy International, Inc. expects to open its first Tempur-Pedic retail location in Manhattan in June of 2020. This one-of-a-kind store in the Bloomberg building will provide customers with a luxury retail experience and ensure they have an opportunity to try out and select the right sleep solution for their personalized needs. The company also announced that on Friday, January 17 it expects to officially open its 56th store at the Walt Whitman Mall on Long Island. The company expects to operate 75 to 80 Tempur-Pedic retail locations by the end of 2020.
Tempur Sealy also noted that it is test marketing its latest compressed mattress offering, the TEMPUR-Cloud, online only in select high-density population markets, including Dallas, Los Angeles, Miami, New York City, San Francisco, and Seattle. The TEMPUR-Cloud mattress is the company’s premium “bed-in-a-box” offering, providing the high quality and premium feel of Tempur-Pedic at an entry level price point and in a convenient shipped-to-your-door format.
“Our direct to consumer business is growing rapidly and is a significant contributor to the company’s profits,” said Thompson. “This business has been very profitable from its inception and has allowed us to diversify our business while getting closer to our customer. This is consistent with our approach of being wherever customers want to shop and it certainly strengthens our powerful omni-channel distribution model.”
“With thousands of retail partners across the world, third party retail distribution has been, and is expected to continue to be, the backbone of our business,” he continued. “Our broad base omni-channel distribution helps us to deliver on our mission to improve the sleep of more people, every night, all around the world.”
Corporate Values And Charitable Contributions
Tempur Sealy made a special contribution before December 31, 2019 of 100,000 shares of its common stock to certain public charities, including the Tempur Sealy Foundation. These shares have a market value of approximately $9 million and represent the largest single charitable contribution in the company’s history. Including this contribution, the company’s charitable activities including cash, common stock and product are valued in excess of $100 million over the last three years.
Additionally, the company also announced the Tempur Sealy Foundation is donating $200,000 across four Lexington, KY-based charities that focus on children and families in need, including KVC Kentucky, Ronald McDonald House of the Bluegrass, Sunrise Children’s Services, and Lexington Rescue Mission. These are local charities the company has had a long-term relationship with both in terms of contributions and service.
Thompson stated, “this one-time special donation reflects the commitment that we feel to communities and certain causes, like children in need. It will be used in part to fund the long-term needs for the Tempur Sealy Foundation, which supports children’s charities in Central Kentucky. I want to thank the Board of Directors for recognizing the extraordinary results that the employees of Tempur Sealy achieved this year, primarily the enormous success of the company’s direct-to-consumer business, the successful effort to resume the Mattress Firm relationship and expansion of the Big Lots relationship. I am proud to be associated with such a supportive Board of Directors and talented group of employees.”
On the heels of this recent donation, the company issued a report further highlighting its corporate social values.
The report, titled “TSI Corporate Social Values”, is divided into three key areas:
- Purpose: “We believe that our products improve our customers’ sleep experience so that health and happiness benefits can be realized. As part of our commitment to improving sleep, Tempur Sealy is proud to be making a difference in the communities where our employees live and work through volunteering, improving consumer health and safety in our sleep products and making charitable and product donations.”
- Our People: “As a global organization, our workforce and communities are important to us. We believe in investing in our workforce to promote health and safety, to train and develop future leaders and corporate citizens, and to encourage diversity and inclusiveness.”
- Environment: “We are committed to utilizing methods of reducing, repurposing and upcycling waste and effectively managing our resources. We sustain our environment through leveraging well-established practices and continually identifying additional areas of opportunity.”
In addition to its new Manhattan store plan and social values updates, Tempur has also promoted quote a few of its own. Cliff Buster was promoted to President, U.S. Direct to Consumer, Steve Rusing was promoted to President, U.S. Sales and Tom Murray was promoted to Executive Vice President, Chief Marketing Officer, U.S.
The company plans to announce its fourth quarter and full year 2019 financial results on February 13th.
About the Company: Tempur Sealy International, Inc. (NYSE: TPX) develops, manufactures, and markets mattresses, foundations, pillows and other products. The Company’s products are sold worldwide through third party retailers, its own stores, and online. The Company’s brand portfolio includes many highly recognized brands in the industry, including Tempur®, Tempur-Pedic®, Sealy® featuring Posturepedic® Technology, and Stearns & Foster®. World headquarters for Tempur Sealy International is in Lexington, KY.