Mattress Firm Net Rises 1.1 Percent in Q3

HOUSTON-Cost increases countered a significant gain in sales to hold Mattress Firm to a bare 1.1 percent gain in net income in its fiscal third quarter, to $12.5 million.

Selling, marketing, general and administrative expenses jumped 66.5 percent in dollars and 300 basis points as a percentage of sales. Due to a 51.8 percent increase in cost of goods sold, gross margin slipped 30 basis points to 39.7 percent.

Net sales in the quarter, which ended on Oct. 30, were up 51.1 percent to $277.3 million, including a pickup of 6.6 percent in same-store sales. Steve Stagner, Mattress Firm president and CEO, said the core strategy of further penetrating existing and new markets has been benefiting the mattress retailer in terms of increased market share and profitability. Since the beginning of the fiscal year, Mattress Firm has added more than 280 net stores through new store openings and acquisitions, which have generated sales above the company's initial expectations, Stagner said.

Stagner also cautioned that Mattress Firm's expectations for the rest of this fiscal year are now below its previous plan, due to pressures on average ticket and reduced traffic growth since the beginning of November. Even with this updated guidance, however, Mattress Firm should achieve 40 percent increases in both sales and operating earnings for the year as a whole, he said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.