Tempur Sealy's Stock Rallies After Upbeat Sales Update

Tempur Sealy International Inc.'s stock rallied 1.5% in premarket trade Monday, after the mattress maker's upbeat sales update for the first two months of the second quarter, in the wake of the "large liquidation" event of its inventory by Mattress Firm earlier this year. The company said North America orders in May rose 15% from a year ago, excluding Mattress Firm, while orders for Tempur-Pedic branded products increased 28%. For the first two months of the second quarter, orders for all brands grew 7%, excluding Mattress Firm. "North America orders were strong in May, and we experienced acceleration in order trends leading up to and including the Memorial Day weekend," said Chief Executive Scott Thompson. "Some retailers reported their best Tempur-Pedic sales in their history as they leaned into our Tempur-Pedic brand." Tempur Sealy shares were rocked in January after it terminated all contracts with major customer Mattress Firm. The stock has tumbled 31% year to date through Friday, while the S&P 500 has gained 8.9%.