Tempur Sealy Market Update
"Prior to the global COVID-19 health concerns, our iconic brands and products had been performing very well throughout the world. We had been experiencing growth in all markets and especially strong growth in
"Our business model has a highly variable cost structure, is broadly distributed geographically and is supported by an omni-channel approach. We will carry our strong operating momentum going into this downturn. We expect near-term profits to be significantly impacted but see our long-term competitive position strengthening through the downturn," continued Thompson.
The Company also announced the actions to mitigate the near-term impact of the material slowdown in business activity while positioning the Company for the recovery period. The Company ceased all share repurchase activity once
Additionally, to provide greater financial flexibility in response to the continued impact of COVID-19, the Company elected to hold
The Company also announced in a separate release today that the Board of Directors has adopted a limited duration shareholder rights plan (the "Rights Plan") and declared a dividend distribution of one right for each outstanding share of common stock. The record date for such dividend distribution is April 7, 2020. The Rights Plan will expire, without any further action being required to be taken by the Company's Board of Directors, on
Further details of the Rights Plan will be contained in a Current Report on Form 8-K and in a Registration Statement on Form 8-A that the Company will be filing with the Securities and Exchange Commission (SEC).
Due to the current business conditions, the Board of Directors unanimously requested, and
Thompson concluded, "There were several attributes to the business that attracted me to working at
This press release contains statements that may be characterized as "forward-looking" within the meaning of the federal securities laws, which includes information concerning one or more of the Company's plans, objectives, goals, strategies, and other information that is not historical information. When used in this release, the words "expects," "will," and variations of such words or similar expressions are intended to identify such statements. These forward-looking statements include, without limitation, statements relating to the Company's liquidity, the Company's expectations regarding future performance, share repurchase program, and capital projects. Any forward-looking statements contained herein are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct.
Numerous factors, many of which are beyond the Company's control, could cause actual results to differ materially from any that may be expressed as forward-looking statements. These risk factors include risks associated with the duration, scope and severity of COVID-19 and its effects on the Company's business and operations, including the disruption or delay of production and delivery of materials and products in the Company's supply chain; a temporary or prolonged shutdown of manufacturing facilities or retail stores; general economic, financial and industry conditions, particularly conditions relating to liquidity, financial performance and related credit issues present in the retail sector, which may be amplified by the effects of COVID-19; consumer confidence and the availability of consumer financing; uncertainties arising from national and global events, including the long-term effects of COVID-19 on the national and global economy; the effect of future legislative or regulatory changes, including changes in international trade, duties, tariffs and other aspects of international trade policy; the effects of consolidation of retailers on revenues and costs and consumer acceptance of and changes in demand for the Company's products.
Other potential risk factors include the risk factors discussed under the heading "Risk Factors" in ITEM 1A of Part 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2019. There may be other factors that may cause actual results to differ materially from the forward-looking statements contained herein. The Company undertakes no obligation to update any forward-looking statement contained herein to reflect events or circumstances after the date on which such statement is made.
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