Furniture Stocks Under Pressure Following Warning From Tempur Sealy

Furniture stocks aren't looking particularly hot after Tempur Sealy International Inc TPX shocked the market with a guidance cut on Monday.

The maker of bedding products said after Tuesday's market close that its third-quarter net sales are tracking below prior expectations and now expects its full-year sales to be down 1 to 3 percent on a year-over-year comparison. For the full year, the company now expects its adjusted EBITDA to fall in a range of $500 to $525 million from a previous range of $525 to $550 million.

After a full day of trading on Wednesday, Tempur Sealy's stock plummeted 22.40 percent and closed the day at $57.77 after trading as low as $56.00. The company's cautious guidance may have signaled to investors that the entire furniture space isn't performing as expected, based on their stock performances.

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Other Names In The Space

For instance, shares of Select Comfort Corp. SCSS, perhaps Tempur Sealy's closest peer and manufacturer of beds and bedding accessories, saw its shares fall more than 9 percent on Wednesday.

Leggett & Platt, Inc. LEG, a manufacturer of engineered components including steel coiled bedsprings, saw its shares trade lower by more than 3 percent on Wednesday.

La-Z-Boy Incorporated LZB, a seller of upholstery furniture products, saw its shares dip nearly 3 percent to close at $24.96 on Wednesday. However, the stock did perform better than other furniture makers, such as Bassett Furniture Industries Inc. BSET and Hooker Furniture Corporation HOFT, as both stocks declined nearly 5 percent.

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