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Mattress Firm sees 40.4% rise in third quarter sales

Larry Thomas -- Furniture Today, December 22, 2011

HOUSTON — On the heels of last month's initial public offering, bedding retailer Mattress Firm said sales in the fiscal third quarter were 40.4% higher than the same period last year.

Net income for the thirteen weeks ended Nov. 1 also was well above the comparable period last year, thanks to improved sales per store that allowed the company to better leverage its fixed costs.

Comparable-store sales grew 18.6% during the quarter.

"We delivered strong financial results for the third quarter as the growth we have been experiencing throughout the year continued," said Steve Stagner, president and CEO. "Our sales results for the year, driven by solid comparable-store sales growth during the quarter and the past two years, reflect the strength and expanding appeal of our brand, customer loyalty, and benefits we derive from selling the leading brands in the bedding industry."

Third-quarter sales totaled $183.5 million, up from $130.7 million in last year's fiscal third quarter.

Net income totaled $12.3 million, or 55 cents per share. That's well above net income of $1.88 million, or 8 cents per share, in the same quarter last year.

The Top 100 retailer opened 25 stores and closed five during the quarter, bring its total company-owned store count to 640 as of Nov. 1. Including franchisees, there are about 800 Mattress Firm stores in 25 states.

Since the quarter ended, Mattress Firm acquired 55 stores and three distribution centers in the Atlanta, St. Louis and Minneapolis markets from fellow Top 100 retailer Mattress Giant.

"We remain focused on executing our growth strategies, which include expanding our store base in underpenetrated markets, selective and opportunistic expansion into new markets, and leveraging the great brands we bring to the consumer to further drive sales growth," said Stagner.

For the 39 weeks ended Nov. 1, sales were $515.4 million, an increase of 40.6% from $366.6 million in the same period the previous fiscal year.

Net income for the 39-week period totaled $16.98 million, or 76 cents per share. That compares with $1.98 million, or 9 cents per share, in the same period the previous year.

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Mattress Firm sales soar 40%

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