Mattress Firm Net Leaps 40 Percent in Q2
HOUSTON-Increased sales, especially from new and recently acquired stores, fueled Mattress Firm to a 40 percent gain in net income in its fiscal second quarter, to $14.1 million.
Net sales in the quarter, which ended on July 30, rose 15.5 percent to $302.5 million. Steve Stagner, Mattress Firm's president and CEO, said the revenue pickup came from strong sales growth from the recently acquired Mattress Giant stores along with the "organic" addition of 35 new stores, which pushed the company's store count past 1,100. The top-line increase was slightly offset by a 0.3 percent decline in same-store sales.
Helped by improved margins at these added stores, total gross margin rose 80 basis points to 39.8 percent. Total operating expenses increased 11.8 percent in dollars but dropped 110 basis points as a percentage of sales, to 31.7 percent.
Stagner said, "We expect that the second half of the year will benefit from a return to higher industry-level advertising media spend relative to recent quarters that we anticipate will drive improvement in customer traffic and sales trends in our business."