Mattress Firm Net Climbs 45.6 Percent in Q3
December 5, 2013,
HOUSTON-With sales rising from both existing and recently acquired stores, Mattress Firm logged a 45.6 percent gain in third-quarter net income, which totaled $18.1 million.
Total net sales in the quarter, which ended on Oct. 29, were $326.2 million, up 17.7 percent and including a gain in same-store sales of 2.9 percent. Speaking yesterday in a conference call to financial analysts, Steve Stagner, Mattress Firm's president and CEO, said the company's acquired stores, including former Mattress Giant locations purchased in May 2012, delivered same-store sales growth of 15 percent in the quarter.
Stagner also said the retailer's upward top-line trend owes to sales initiatives put in place in response to pressure from consumer spending trends: first, a greater emphasis on unit capture and market-share gain through increased transactions; second, a more aggressive approach on a number of select price points; and third, broadening the availability of third-party consumer financing.
During the conference call, James Black, Mattress Firm's executive vice president and chief financial officer, said the company expects fourth-quarter same-store sales to finish with an increase in the mid- to high single digits. Full-year total sales are expected to increase 21 percent over the prior fiscal year, Black said.
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