Market Spotlight: Specialty mattresses

However, as consumers cut back on discretionary spending amid spiraling food and gas prices, a prolonged housing slump and weak credit markets, specialty mattress makers have been hit hard.

While the average mattress costs about $500, specialty mattresses can cost thousands of dollars.

And in the current environment, "you might hesitate on a $2,000 mattress purchase," said Morgan Keegan analyst Laura Champine. "For the first time in years, traditional mattress sales are holding up better than specialty."

Meanwhile, prices for raw materials such as steel for springs and foam have been soaring. As a result, specialty mattress makers reported dismal earnings for the first quarter.

In April, Select Comfort Corp., known for its "Sleep Number" bed, said it swung to a first quarter loss while revenue fell 22 percent.

Tempur-Pedic International Inc. said first-quarter profit fell by more than half as sales fell 7 percent.

At the time, company Chief Executive H. Thomas Bryant said "we believe average selling prices in the industry are trending lower as many consumers defer high-end mattress purchases."

Sealy Inc.'s first-quarter profit dropped 34 percent, hurt by higher material costs and a dip in wholesale domestic sales. Revenue fell 5 percent.

Share prices have suffered as well. Since the beginning of the year, Tempur-Pedic shares are down 69 percent, Sealy shares have dropped 47 percent and Select Comfort shares are down 77 percent.