Mattress Firm second-quarter sales boosted by acquisitions

BRIEFLY
Mattress Firm second quarter
Net sales $302.5 million
Net income $14.1 million
Earnings per share $0.41

Mattress Firm Holding Corp., the parent of Houston-based bedding retailer Mattress Firm, has reported its fiscal second-quarter results for the period ending July 30.

Net sales for the second quarter were $302.5 million, an increase of 15.5% over the same quarter of fiscal 2012. The increase reflected incremental sales from new and acquired stores, offset by a 0.3% decline in comparable-store sales, the company said.

Net income for the second quarter was $14.1 million and GAAP earnings per share were $0.41. Excluding $0.6 million net of income taxes, acquisition-related costs and other costs, net income for the second quarter was $14.7 million and adjusted EPS was $0.43, a 3.7% increase over the prior-year quarter.

Income from operations in the second quarter of 2013 was $25.9 million. Adjusted income from operations was $26.9 million, a 14.3% increase over the prior-year quarter. Adjusted operating margin for the fourth quarter decreased 10 basis points to 8.9% of net sales, over the prior-year quarter at 9.0% of net sales.

During the second quarter, Mattress Firm opened 35 new stores and closed 10 stores, bringing the total number of company-owned stores to 1,121.

“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,” said Steve Stagner, Mattress Firm president and chief executive officer. “The former Mattress Giant stores continue to generate strong sales growth that is driving operating margin expansion, while sales at our legacy stores in those acquisition markets have also improved year over year, further validating the strength of our relative market share strategy. We expect that the second half of the year will benefit from a return to higher industry-level advertising media spend relative to recent quarters that we anticipate will drive improvement in customer traffic and sales trends in our business.”