|Net sales||$188.6 million|
|Net income||$17.4 million|
|Fiscal 2011 snapshot|
|Net sales||$703.9 million|
|Net income||$34.4 million|
Houston-based sleep shop chain Mattress Firm reported net sales of $188.6 million in the fourth quarter of fiscal 2011, ending Feb. 1—an increase of $61.1 million or 47.9% over the fourth quarter of fiscal 2010.
The increase was the result of comparable-store sales growth of 24.8% and incremental net sales of $32 million from the opening of new stores and acquired stores, with increases offset by a reduction in net sales of $1.5 million related to store closures, the company said.
Net sales grew by 42.5% to $703.9 million for fiscal 2011. Mattress Firm attributed the increase to comparable-store sales growth of 20.5%, which added $99 million in net sales, and incremental net sales of $116.4 million from the opening of new stores and acquired stores.
Net income for the fourth quarter of 2011 was $17.4 million, including a $3.8 million pretax loss on early extinguishment of debt in connection with the initial public offering in November 2011 and an after-tax deferred tax benefit of $14.2 million. Earnings per diluted share were $0.56 in the fourth quarter of fiscal 2011.
Net income for fiscal 2011 was $34.4 million, including a $5.7 million pretax loss on early retirement of debt in connection with completion of its IPO and an after-tax deferred tax benefit of $20.1 million. Earnings per share for the full year were $1.40, as compared with $0.02 in fiscal 2010.
Gross profit for the fourth quarter increased 61.2% to $75.9 million over the prior-year quarter. The 330 basis-point improvement in gross profit margin was “primarily a result of increasing leverage over occupancy and operating costs due to improving sales per store,” the company said.
As of Jan. 31, Mattress Firm operated 729 company-owned storefronts. It added 41 new stores and acquired 55 stores from Mattress Giant Corp. during the fourth quarter of 2011. It opened a total of 106 new stores in fiscal 2011, while closing 24. (In April, Mattress Firm completed the acquisition of Mattress Giant, adding an additional 180 storefronts. See story on Page XX.)
Income from operations increased 177.7% to $15.3 million in the fourth quarter of fiscal 2011, compared with the same period a year ago. As a percentage of sales, income from operations improved 380 basis points to 8.1% from 4.3%.
For the full year, income from operations increased 87.8% to $60.5 million, compared with fiscal 2010. As a percentage of sales, income from operations improved 207 basis points to 8.6% from 6.5%.
“We completed fiscal year 2011 with great momentum, producing our highest quarterly sales and comparable-store sales growth in the fourth quarter and accentuating the strong financial results experienced throughout the year,” said Steve Stagner, Mattress Firm chief executive officer. “Our results for the year, driven by solid comparable-store sales growth that has continued for 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. In addition, we are encouraged by the consistent sales increases reported by the bedding industry as we believe pent-up consumer demand and product innovations are driving customers into the market.”