TPX - Mattress stocks are an uncomfortable investment as inflation runs hot - UBS

Slowing sales for mattress manufacturers are motivating bearishness on the sector from UBS. After talks with experts and retailers in the industry, UBS analyst Atul Maheswari said sales remain “sluggish” and are likely to remain depressed until labor day. ‘The expert believes inflationary pressures are weighing on the consumer, which is impacting bedding sales as mattress purchases are typically easily deferrable,” he told clients on Friday. “The expert noted that mid-priced beds and upper-end beds are performing meaningfully better than lower-end beds.” For the mid-priced beds, Tempur Sealy International’s (NYSE:TPX) Tempur-Pedic and Stearns & Foster brands were noted as maintaining “flattish” sales from 2021. However, it’s lower price Sealy mattresses were cited for underperformance. Additionally, DTC sales have been falling dramatically as pandemic online shopping trends taper off, holding meaningful implications for the likes of Purple Innovation (PRPL) and Casper. For the broader industry that also includes names like Sleep

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Mattress stocks are an uncomfortable investment as inflation runs hot - UBS