Sleep Country Canada Q1 sales edge up 1.6% while income drops 22.9%

TORONTO – Canada’s largest sleep retailer Sleep Country Canada reported an increase in net sales and a slight dip in its income for the first quarter, a period that continued to see consumer volatility.

For the quarter ended March 31, the 305-store retailer posted first quarter net sales of C$209.7 million, a 1.6% increase from net sales of C$206.5 million in the same quarter last year. Net income for the quarter dropped 22.9% to C$8.7 million from net income of C$11.3 million in the first quarter last year.

“This quarter’s shopping patterns remained volatile as consumers continue to navigate these uncertain times,” said Steward Schaefer, president and chief executive officer of the retail chain. “Despite this pressure, we saw revenues increase by 1.6% and delivered an improvement in our gross margin by 50 basis points year over year as we continue to source our merchandise more efficiently.”

Schaefer said as the company enters its 30th year, “we are more bullish than ever before about the future of our sleep ecosystem which has been transformed over the last few years.  With our evolved business model, we are better positioned today than at any other point in our history to drive strong performance for years to come.”

The company attributed the quarterly sales growth to incremental revenue earned from new stores, wrap stores opened last year, and the acquisition of Casper Canada last year. During the quarter, same-store sales dipped 1.6%, offsetting sales growth.

See also:

  • Here’s why Sleep Country Canada shifted its display strategy at 13 stores
  • Sleep Country Canada bucks this week’s earnings trend, sees Q3 sales increase

 

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