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Larry Thomas

Mattress Firm 2Q profits soar 40%; sales up 15.5%

HOUSTON - Bedding retailer Mattress Firm said second-quarter sales rose 15.5% and profits shot up 40% as the company continued to expand through acquisitions and new store openings.
     Same-store sales, however, slipped 0.3%, and the retailer said the figure likely would be flat for its fiscal year.
     Net sales for the quarter ended July 30 were $302.5 million, up from $262 million in the same quarter in 2012.
     Net income totaled $14.1 million or 41 cents per share. That was up from $10.1 million or 30 cents per share in the comparable quarter.
     The company finished the quarter with 1,121 company-owned stores - a net gain of 25 during the quarter - and has added 64 stores in the first six months of its fiscal year.
     Six-month sales and profit figures were similar. Sales rose 22.6% to $578.5 million and net income was up 31.8% to $26.1 million or 77 cents per share.
     Same-store sales for the six months ended July 30 fell 2.5%.
     "Our exciting growth story continued in the second quarter of 2013," said Steve Stagner, president and CEO. "We saw revenues increase by 15% over the prior year to $303 million, which evidences that our growth is outpacing the mattress industry, which has experienced mid-single-digit growth during the comparable period."
     Stagner said he expects sales and store traffic to improve in the second half of the year as the industry increases its advertising spending.
     The company, however, has cut its sales and earnings estimates for its fiscal year, which ends Jan. 28.
    Sales are now projected at $1.19 billion to $1.21 billion, down from a March projection of $1.24 billion to $1.25 billion.
     The new earnings per share projection is $1.66 to $1.74, down from the March projection of $1.81 to $1.89.
     In its last fiscal year, Mattress Firm had sales of $1.007 billion and earnings of $1.18 per share.

Mattress Firm

Earnings per share are fully diluted.

13 weeks ended 7/30

2013

2012

Change

Sales

$302,541,000

$262,018,000

15.5%

Operating income

24,928,000

16,352,000

52.4%

Net income

14,123,000

10,085,000

40.0%

Earnings per share (a)

0.41

0.30

36.7%

26 weeks ended 7/30

2013

2012

Change

Sales

$578,498,000

$471,832,000

22.6%

Operating income

46,470,000

33,136,000

40.2%

Net income

26,132,000

19,821,000

31.8%

Earnings per share (b)

0.77

0.59

30.5%

(a) Includes acquisition costs of 12 cents per share in 2012 and enterprise retail planning (ERP) system implementation costs of 2 cents per share in 2013. (b) Includes acquisition costs of 14 cents per share in 2012 and 1 cent per share in 2013, as well as ERP system implementation costs of 3 cents per share in 2013.

 

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