Retail

Mattress Firm Earnings Not Enough for Investors

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Mattress Firm Holding Corp. (NASDAQ: MFRM) released its fiscal third-quarter earnings report before the markets opened on Monday. The company had $0.82 in earnings per share (EPS) on $669.5 million in revenue, compared to consensus estimates from Thomson Reuters of $0.81 in EPS on $660.63 million in revenue. The same period from the previous year had $0.70 in EPS on $464.28 million in revenue.

During the quarter, the company opened 87 new stores and closed 15 stores, bringing the total number of company-operated stores to 2,295.

In terms of guidance, Mattress Firm expects EPS in the range of $2.33 to $2.42 and net sales in the range of $2.53 billion to $2.55 billion, with comparable store sales growth in the low single digits. The consensus estimates call for $2.39 in EPS on $2.55 billion in revenue.

On the books, the company had cash and cash equivalents totaling roughly $10.3 million at the end of the fiscal third quarter.

Steve Stagner, CEO of Mattress Firm, commented on earnings:

We are pleased with our third quarter results, with over 50% net sales growth and a 3.8% comparable-store sales increase, representing our ninth consecutive quarter of positive same store sales. Our third quarter Adjusted EPS grew 17% from the prior year, as we continue to execute on our plan and integrate the nine acquisitions, totaling over 600 stores, that we completed in fiscal 2014. Our Sleep Train business continues to perform extremely well with strong sales growth as we convert the Mattress Discounters stores to the Sleep Train banner. With our recently streamlined organizational structure and initiatives in place, we believe we are well-positioned to execute on our growth strategies and capitalize on our relative market share strategy.

Shares of Mattress Firm were last seen trading down 4.2% at $48.86 Monday, with a consensus analyst price target of $59.00 and a 52-week trading range of $38.66 to $70.42.

 

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