We are mindful of macroeconomic conditions, including low consumer confidence generally, and that our retail partners report traffic continues to be down sharply.
Dale Williams, Executive Vice President and Chief Financial Officer, Tempur-Pedic

Tempur-Pedic (NYSE:TPX) announced net sales declined 7% to $238.7 million in the second quarter of 2008. Net sales in the domestic segment declined 13%, while international segment net sales increased 4%. On a constant currency basis, international segment net sales decreased 9%.

President and Chief Executive Officer H. Thomas Bryant said, "In the second quarter, domestic mattress industry trends continued to decline and many international markets continued to weaken, particularly towards the end of the quarter."

Bryant continued, "Over the next few quarters, we will begin the most extensive new product launch in our company's history. At the Las Vegas furniture show this month, we will unveil two new mattress models and an upgraded DeluxeBed. Internationally, we are in the early stage of rolling out several new mattress and pillow models."

Tempur-Pedic recently named Mark Sarvary CEO and President, succeeding Bryant effective August 4, 2008.

The Company lowered full year 2008 guidance for net sales and earnings per share. It currently expects net sales for 2008 to range from $0.98 billion to $1.02 billion, a decrease of 11% to 8% as compared to 2007.

Executive Vice President and Chief Financial Officer Dale Williams commented, "In reviewing our plans for the rest of the year, we are mindful of macroeconomic conditions, including low consumer confidence generally, and that our retail partners report traffic continues to be down sharply. We believe it is prudent to reduce our short-term expectations."