SCSS changed their marketing strategy, which dramatically increased their costs, which is why their top and bottom lines were down. Now they will shift back to their previous strategy, and they're confident to meet their guidance.
That said, I believe it is a buy in AH, and an overreaction. As an alternative, I'm thinking about going long TPX, it recently broke out of consolidation, and with their recent merger they're the worldwide leader in sleep products. I think this quarterly miss is company specific, and not affecting their competition, because of what I mentioned above.
Yes. They maintained guidance. Also, if you look at capital expenditures, you can see that much (if not all--I did not meticulously crunch the numbers) of the difference in the bottom line can be accounted for by the increase in capital spending, without which earnings would have been more in line.