Net sales up 40.4% to $183.5 mn at Mattress Firm
Mattress Firm Holding Corp. announced its financial results for the fiscal 2011 third quarter (thirteen weeks) ended November 1, 2011.
"We delivered strong financial results for the third quarter as the growth we have been experiencing throughout the year continued," stated Steve Stagner, Mattress Firm's chief executive officer. "
"Our sales results for the year, driven by solid comparable-store sales growth during the quarter and 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.
Looking ahead, we remain focused on executing our growth strategies, which include expanding our store base in underpenetrated markets, selective and opportunistic expansion into new markets and leveraging the great brands we bring to the consumers to further drive sales growth.
"With the successful completion of our initial public offering in November, we have a strong balance sheet to support our future growth. We believe our Company is uniquely positioned to capture additional share growth and has a compelling opportunity to further penetrate the sector and continue profitable growth as we move forward and create additional value for our shareholders."
Fiscal Third Quarter Results
Mattress Firm reported net revenues of $183.5 million for the third quarter, compared to $130.7 million in the same period of the prior year ended November 2, 2010, an increase of $52.8 million, or 40.4%.
The increase in sales was the result of comparable-store sales growth of 18.6%, adding $23.8 million in net sales, and incremental net sales of $30.7 million from the opening of new stores and acquired stores prior to their inclusion in comparable-stores sales results, with such increases offset by a reduction in net sales of $1.7 million related to stores that were closed.
For the quarter, the Company opened 25 new stores, while closing five stores, bringing the total company-operated stores to 640 as of November 1, 2011, as compared with 538 stores at November 2, 2010, and 592 stores at the end of fiscal 2010 on February 1, 2011.
For the quarter, gross profit improved 52.1% to $73.4 million, compared to the same period of the prior year. As a percentage of sales, gross profit improved 310 basis points to 40.0% from 36.9%, primarily as a result of increasing leverage over occupancy costs due to improving sales per store results.
For the quarter, income from operations improved 86.1% to $21.4 million, compared to the same period of the prior year. As a percentage of sales, income from operations improved 286 basis points to 11.7% from 8.8%. The improvement over the prior year resulted primarily from the improvement in gross profit, offset slightly by expected deleveraging in sales and marketing expense due to strong revenue growth.
Net income for the quarter was $12.3 million, compared to $1.9 million in the same period of the prior year. Net income per share grew to $0.55 from $0.08, with weighted-average shares outstanding in both comparable quarters of 22.4 million, which reflected the Company's equity structure prior to completion of the initial public offering after giving retroactive effect to a 227,058-for-one forward stock split of the Company's common stock that occurred on November 3, 2011.
Net income per share results for the quarter are as historically reported, including retroactive effect of the stock split, and do not include new shares issued or the pro forma effects of debt reduction resulting from the initial public offering completed on November 23, 2011.
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Mattress Firm Holding Corp