Tempur-Sealy International, a leading manufacturer of sleep products such as mattresses and foundations, received a rather rude wake-up call September 28. Tempur-Sealy’s shares (NYSE:TPX) fell over 20% that morning after the company announced that it expected full year sales to decline between 1% and 3% from 2015 levels. While Tempur-Sealy cited lower-than-expected third quarter sales for the revision, the company did not provide an explanation for that decline.
Competing manufacturer Select Comfort Corporation’s stock price (NASDAQ:SCSS) also fell on the news, suggesting that investors are concerned about the outlook of the broader industry.