Tempur Sealy Int'l estimates lowered by Wedbush (46.47 -2.05)
Wedbush's Q2 TPX North America revenue growth estimate falls from +3.5% to +0.6%, driving their consolidated revenue estimate of $674 mln versus $694 mln consensus.
Based on their checks with numerous retailers, they believe bricks and mortar retail mattress sales declined low single digits for the Memorial Day sales period, continuing the trend from 1Q18. Aggressive promotions from Mattress Firm likely stole some unit share from TPX retailers, with TPX planning a response for July with its own free adjustable base promotion based on their checks.
These factors lead them to tick down their 2Q18 TPX estimates further below consensus, but they remain positively inclined on TPX shares in anticipation of a positive Mattress Firm event near-term and improving product and margin drivers though the balance of the year.