Mattress Firm Holding Corp., parent of Houston-based bedding retailer Mattress Firm, reported full-year 2015 net sales jump of $2.542 billion, a 40.7% increase compared with fiscal 2014.
The increase was attributed to incremental sales from new and acquired stores, and comparable-store sales growth of 2.1%.
Net income was $64.5 million in fiscal 2015, with earnings per share of $1.82, compared with net income of $44.3 million for fiscal 2014 and EPS of $1.27.
The total number of company-operated stores increased in fiscal 2015 by 265, or 12.7%, to 2,359, as a result of 311 store-openings, a nine-store acquisition and the closing of 55 stores.
Income for 2015 from operations was $143.7 million. Adjusted income from operations was $174.2 million, excluding $30.5 million of acquisition-related costs, secondary offering costs, enterprise software implementation costs, fixed asset impairment and severance costs, the company said.
Adjusted operating income margin for the year was 6.9% of net sales, compared with 7.7% in fiscal 2014, and included 80 basis-points of expense leverage from general and administrative expense, an 80 basis-point decrease in gross margin, and 80 basis-points of decrease in sales and marketing expense leverage.
In its fourth fiscal quarter, Mattress Firm reported net sales of $618.6 million, a 3.4% increase compared with the prior-year quarter.
Net income was $13.3 million for the quarter, or $0.37 per share, up from $6.6 million and $0.19 per share in the prior-year period. Excluding $5.7 million, net of income taxes, of acquisition-related costs, fixed asset impairment costs and severance charges, adjusted net income was $19 million and adjusted EPS was $0.53.
Fourth-quarter income from operations was $31.5 million. Excluding $8.9 million of acquisition-related costs, fixed asset impairment costs and severance charges, adjusted income from operations was $40.4 million, compared with $36.7 million for the comparable prior-year period.
Adjusted operating income margin was 6.5% of net sales, compared with 6.1% in fiscal 2014, and included 170 basis-points of expense leverage from general and administrative expense, 90 basis-points of expense deleverage in sales and marketing expense, 30 basis-points of gross margin decline, and 10 basis-points of margin declines in loss on store closings.
On Nov. 25, Mattress Firm agreed to purchase HMK Mattress Holdings LLC, the holding company of Sleepy’s for approximately $780 million. Sleepy’s operates approximately 1,050 retail stores located in 17 states. The acquisition was completed Feb. 5, during the first week of the company’s fiscal 2016.
In addition, during the fourth quarter, Mattress Firm completed its acquisition of Double J-RD LLC, a former franchisee that operated nine stores under the Mattress Firm brand in East Texas and Louisiana, for approximately $3.7 million.
In its guidance for full-year 2016, Mattress Firm projects sales of $3.9 billion to $4 billion; adjusted earnings before interest, taxes, depreciation and amortization of $365 million to $370 million; and earnings of $2.00 to $2.05 per share.
