Michael Cox, an analyst with Piper Jaffray, said he believes the lowered expectations are company-specific and not indicative of the bed manufacturing industry as a whole.
Laura Richardson, a BB&T Capital Markets analyst, also said she believes the issues to be company-specific.
"The issues appear to be more self-induced than macro," she said in a research report. "The company focused its sales organization on the new higher-end mattress lines to the detriment of mid- and low-priced lines."
So who is right, when SCSS execs say that consumer spending is soft and analysts say that other bedding manufacturers shouldn't be affected? The analysts don't seem to make sense here. The missed sales in low,mid range beds affected the 2nd quarter, why do you project that onto the whole year? The company is reducing this year's guidance because of possible consumer spending softness. For the analysts to directly contradict that and say other bedmakers won't be affected seems strange to me.