Tempur-Pedic (NYSE:TPX) is down another 3% today and has lost more than half its value in the past two days after the company cut its current and fiscal year forecasts. The mattress make has admitted that its competitors are gaining ground against them in a market it once had complete control over.
CEO Mark Sarvary said in a statement yesterday that the number of rival products supported by aggressive marketing and promotion is “unprecedented.” Following this news and statement, heavy selling pressure saw $1.5 billion of the company’s market value disappear.
Tempur-Pedic is now expecting sales of about $1.43 billion in 2012, down from its earlier forecasts of $1.6 to $1.65 billion.
