Shares of mattress makers took a dive Wednesday, after Wedbush analyst Seth Basham said he has seen signs suggesting Memorial Day sales came up short. That “negative” sales weekend came despite what Basham said in a pre-weekend note were signs of “incremental promotional intensity” and “outsized discounting” to goose sales. Shares of Tempur Sealy International Inc. sank 6.3% in morning trading, Purple Innovation Inc. slid 5.6% and Sleep Number Corp. dropped 5.9%. The selloff compares with the S&P 500’s 0.6% decline. “Our Memorial Day weekend mattress sales checks with retailers and industry contacts leaned negative, with total bricks-and-mortar sales flat-to-down [last-seven-days, year-over-year], and implying industry unit sales down mid-single- to high-single digits for the holiday period,” Basham wrote in a note to clients. Basham said there’s evidence that sales for mattresses priced below $1,000 saw larger sales declines, while premium and luxury priced mattresses fared better but saw “waning” demand.
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