Mattress Firm Net Balloons in First Quarter
HOUSTON-Buoyed by a sales increase and by controls over expenses, Mattress Firm's first-quarter net income rose by 846 percent to $9.7 million.
Net sales for the quarter, which ended on May 1, jumped 38 percent to $209.8 million, which included a same-store sales increase of 16.1 percent. A Mattress Firm statement said the retailer benefited from a speeding up of its initial rebranding efforts plus the addition of 180 stores from its acquisition of Mattress Giant, which was finalized during the quarter. The latter, in particular, helped firm sales during the Memorial Day holiday period, which is the beginning of Mattress Firm's key summer selling season.
"The acquisition has significantly strengthened our presence in several key markets," said Steve Stagner, Mattress Firm's president and CEO. The acquired Mattress Giant stores are located in certain Texas and Florida markets.
Gross margin jumped 250 basis points to 39.3 percent. Operating expenses, while increasing 38 percent in dollars, remained flat at 31.3 percent as a percentage of sales. Interest expense fell 75 percent.
Based on the first-quarter numbers, fiscal 2012 sales are expected to total between $1.03 billion and $1.06 billion, with a same-store sales increase of from 10 percent and 12 percent. Mattress Firm said it also expects to open about 100 new stores during the fiscal year.