For example, Tempur Sealy International saw sales peak in the early months of the pandemic when consumers invested in upgrading their dwellings. However, the brand is now growing at a slower pace. These challenges are prompting the brand to delay the launch of its new product line until next year.
Sleep Number Corp., meanwhile, reported weak revenue and profit last week due to delayed shipments of semiconductors, which are essential to making smart mattresses, and a decline in demand. The company is also reportedly expecting weak sales in 2022 and slimmer profit margins.
The slow growth of the mattress companies is also attributed to a decline in U.S. home sales due to rising mortgage rates, and the infrequent nature of bedding product purchases, Reuters reported.
“Inflation was high, gas prices increased – so the overall macro coupled with lower consumer confidence domestically is essentially causing the slowdown in a lot of these big-ticket discretionary items,” UBS analyst Atul Maheshwari said.