| BRIEFLY | |
| Mattress Firm full year | |
| Net sales | $1.2 billion |
| Net income | $52.9 million |
| Earnings per share | $1.55 |
| Mattress Firm fourth quarter | |
| Net sales | $312.1 million |
| Net income | $8.7 million |
| Earnings per share | $0.25 |
Mattress Firm Holding Corp., the parent of Houston-based bedding retailer Mattress Firm, has reported its full-year results for fiscal 2013 ending Jan. 28. Net sales for the full year increased 20.8% to $1.2 billion, as compared with fiscal 2012. The growth was a result of incremental sales from new and acquired stores and comparable-store sales growth of 1.3%, the company said.
During fiscal 2013, the retailer added 168 company-operated storefronts, bringing its year-end total to 1,225 stores.
Full-year net income was $52.9 million and earnings per share (using generally accepted accounting principles) were $1.55. Excluding $3.8 million, net of income taxes, of ERP system implementation costs, acquisition-related costs and other costs, adjusted net income was $56.7 million and adjusted EPS was $1.66, representing an increase of approximately 12.5% and 11.4%, respectively, as compared with the prior year.
In the company’s fourth fiscal quarter, net sales increased 20.8% to $312.1 million, as compared with the prior-year quarter. The increase reflected comparable-store sales growth of 6.5% and incremental sales from new and acquired stores, the company said.
Income from operations in the fourth quarter was $16.7 million, a 3% decrease as compared with the fourth quarter of 2012. Excluding $2.9 million of ERP system implementation costs, acquisition-related costs and impairment charges, adjusted income from operations was $19.6 million, as compared with $21.5 million for the comparable prior year period. Adjusted operating income margin was 6.3% of net sales as compared to 8.3% in the same quarter of fiscal 2013, and included a 150 basis-point decline in gross margin and a 50 basis-point decrease from general and administrative expense deleverage.
Mattress Firm reported a 14% increase in net income to $8.7 million in the fourth quarter as compared with the prior-year quarter. GAAP earnings per share were $0.25. Excluding $1.7 million, net of income taxes, ERP system implementation costs, acquisition-related costs and impairment charges, adjusted net income was $10.4 million and adjusted EPS was $0.30.
“We are proud of our accomplishments in fiscal 2013, including growth of over 20% in net sales and over 11% in adjusted EPS over the prior year,” said Steve Stagner, Mattress Firm president and chief executive officer. “Given this solid performance in a challenging environment, we are confident in our ability to effectively navigate the ever-changing consumer landscape while delivering value to our customers and shareholders. As we move ahead, we remain committed to our strategy of driving sales, which led to 6.5% comparable-store sales growth during the fourth fiscal quarter. Together with our ability to selectively add accretive acquisitions to complement our steady organic growth, the company is poised to take advantage of the ongoing meaningful opportunities to expand our relative market share, which will further fortify our markets and strengthen our position as the nation’s leading bedding specialty retailer.”
On March 3, Mattress Firm completed the acquisition of two former franchisees with 37 storefronts in Colorado, Kansas and Virginia. On March 7, the company announced its intent to purchase retail chain Sleep Experts, with 56 locations in Texas.
The company’s updated financial guidance for 2014 includes net sales from $1.46 billion to $1.56 billion, a 6% increase as compared with its previous financial guidance; higher GAAP earnings per share of $1.67 to $1.76; and comparable-store sales growth remaining in the single digits.
