Mattress Firm posts strong same store sales

Just a few weeks after taking over several regional bedding companies, Mattress Firm reported profits of $15.6 million or 45 cents per share, compared to $18.1 million or 53 cents per share for the year-ago quarter. Sales for the third quarter increased 42.3% to $464 million from $326 million a year ago, reflecting same-store sales growth of 8.5%.

“The integration of Sleep Train and other operations continues to progress, providing us with the confidence that our company will derive further benefits from our deliberate strategic growth initiatives. We estimate that our entry into and operation of the Chicago market in the third quarter resulted in an approximate loss of three cents per diluted share, excluding acquisition-related costs. We remain steadfast in our commitment to pursuing the relative market share strategy and creating value for our shareholders as we expand our presence as the leading national mattress specialty retailer,” said Steve Stagner, Mattress Firm’s CEO.

Looking forward to full fiscal year ending Feb. 3, the company now expects net sales of $1.77 billion to $1.79 billion, earnings of $1.44 to $1.50 per share and adjusted earnings of $2.03 to $2.13 per share. Previously, the company forecast net sales of$1.545 billion to $1.585 billion, earnings of $1.59 to $1.65 per share and adjusted earnings of $2.03 to $2.13 per share. Mattress Firm shares have increased 62 percent since the beginning of the year. In the final minutes of trading on Monday, shares hit $69.68, an increase of 88 percent in the last 12 months.

Mattress Firm operates more than 2,000 company-operated and franchised stores across 40 states.