Mattress Firm Q2 income takes deep dive on 4.6% sales slide

HOUSTON – Mattress Firm’s most recent financial results show that the industry’s largest sleep retailer Mattress Firm isn’t immune to the mattress segment’s slowdown.

In its most recent non-GAAP financial breakdown, the retailer posted a 4.6% slide in net sales to $947.6 million for the second quarter ended April 2, compared with $992.8 million in the same quarter last year. Net income for the company in the quarter dropped 35.7% to $19.1 million, compared with $29.7 million in the second quarter of last year.

The update also indicates that Mattress Firm incurred $6 million in costs in the quarter this year and $7.2 million in the same quarter last year related to the exploration, development and execution of strategic initiatives and opportunities related to the Tempur Sealy International acquisition agreement and expected transaction.

For the 26-week period, the company reported $11.3 million for strategic initiatives, compared with $12.3 million in the same period last year, related to the pending $4 billion acquisition. Tempur Sealy issued its first quarter earnings update earlier this week, and said it continues to expect the deal to receive approval from the Federal Trade Commission and close in the second half of this year.

During the second quarter, the company’s store count dropped 10 doors to 2,319 compared with 2,329 in the second quarter last year.

For the first half of the year, the retailer reported net income of $28 million, a 45.8% slide compared with $51.7 million in the first half of fiscal 2023. Net sales for the first half dropped 4.8% to $1.87 billion from $1.97 billion in the same period in the prior year.

See also:

  • Tempur Sealy continues to ink supplier agreements, moving toward acquisition’s close
  • Tempur Sealy to divest 200 retail stores ahead of $4B Mattress Firm deal

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