Mattress Firm sales soar 38.1% in first quarter
Jay McIntosh -- Furniture Today, June 6, 2012
HOUSTON — Mattress Firm said its sales jumped 38.1% and its net income rose to $9.7 million in its fiscal first quarter, up from $1 million a year earlier, on the strength of a healthy same-store sales gain along with new store openings and acquisitions.
The Houston-based specialty sleep retailer reported sales of $209.8 million in the 13 weeks ended May 1, up from $151.9 million in the comparable period a year ago.
Quarterly earnings amounted to 29 cents per share, up from 5 cents a year earlier. The latest period included $1.2 million in acquisition-related costs in Mattress Firm's deal to buy 180 Mattress Giant stores in Texas and Florida, which closed on May 2, just after the quarter's end. Excluding those costs, earnings were 31 cents per share, the company said.
"Our first quarter results reflect our ability to execute on our profitable growth strategy through a combination of store unit growth and consistent increase in comparable-store sales," said Steve Stagner, the retailer's president and CEO.
"We are extremely pleased with the successful execution of our plan to transition the newly acquired Mattress Giant stores in advance of the Memorial Day weekend, which is the beginning of our key summer selling season. The acquisition has significantly strengthened our presence in several key markets. We remain well positioned to capture additional market share and build long-term shareholder value as the largest U.S. specialty bedding retailer," Stagner said.
Despite the growth, Mattress Firm's stock price declined as it missed a Wall Street revenue estimate of $212.1 million, according to FactSet. Still, it topped an earnings estimate of 25 cents per share.
For the full fiscal year, the company boosted its earnings expectations to $1.46 to $1.50 per share, from a previous estimate of $1.40 to $1.48. It said it continues to expect sales in the range of $1.03 billion to $1.06 billion, which includes $90 million to $95 million from the Mattress Giant stores acquired last month.
For the second quarter, it expects sales of $270 million to $275 million and earnings per share in the range of 26 to 29 cents, which includes acquisition costs of 9 to 11 cents from the Mattress Giant deal.
Reporting sales by product category, Mattress Firm said it sold $100.9 million worth of specialty mattresses in the latest quarter, compared with $90.9 million worth of conventional bedding. That's a turnaround from a year ago, when the breakdown was $59.4 million in specialty and $78.9 million conventional.
Industry Related Content
Furniture Today's Ray Allegrezza Speaks with Stephen Bogart about Fine Furniture's New Bogart Line