Tempur Sealy International Inc. (TPX) shares soared 8.6% in Monday trading after the mattress maker announced that it expects a 30% year-over-year increase in net sales in the third quarter. The company said in a business update that its seeing improving order trends for its Tempur-Pedic products, though it has experienced supply chain problems that are "outside the company's control." This month, Tempur Sealy will use its operating cash flow to repay a $200 million 364-day incremental term loan, which will result in a $5 million annual interest payment savings. It will also remove some restrictions on share buyback programs and dividends. And the company has approved an early termination of the shareholder rights plan, which will now expire on September 14 versus a previous expiration date of March 26, 2021. The company also announced that Cliff Buster has been promoted to chief executive of Tempur Sealy North America, effective January 1, 2021. He's currently president of the U.S. business. Tempur Sealy shares have gained 6.4% for the year to date while the S&P 500 index is up 5.3% for the period.
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 14, 2020 12:02 ET (16:02 GMT)
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