EmailTempur-Pedic (TPX $26.73 -17.04) issues downside guidance for the second quarter with EPS down approximately 50% year over year to approximately $0.38 (from $0.76) versus the $0.86 consensus and revenue growth of 3 to 5% year over year to approximately $325-332 million versus the $396.21 million consensus, driven by the expectation that the Company's North American sales will decline ~8% year-over-year, below plan. The company issued downside guidance for fiscal year 2012 with lowered EPS to approximately $2.70 from $3.80-3.95 versus the $3.95 consensus and lowered fiscal year 2012 revenues to approximately $1.43 billion versus the $1.60-1.65 billion versus the $1.66 billion consensus. "In light of the current environment for North American sales, our guidance assumes that North American sales for the third and fourth quarters will each be approximately equal to the second quarter sales factoring in modest seasonality. Our international business continues to perform well and we have made no substantive changes to our expectations for international sales.
Sales trends in our North America business during Q2 have been disappointing and below plan, primarily due to changes in the competitive environment, including an unprecedented number of new competitive product introductions which have been supported by aggressive marketing and promotion. As a result, we are projecting lower sales than previously anticipated for the rest of the year and are taking actions to realign our expense structure appropriately. However, we remain very confident in our Company's growth potential and our strong brand, and as a result remain committed to our long-term strategic plan."
