Mattress Firm Holding Investors Will Sleep Well Following Preliminary Q2 Results

Mattress Firm Holding MFRM on Monday reported preliminary net sales and adjusted earnings per share for the second quarter.

Mattress Firm saw its sales in the second quarter rise by 35 percent from a year ago to $410 million while comp sales have risen 28.8 percent. Earnings per share is expected to be in a range of $0.58 to $0.61, an improvement from the $0.43 per share the company earned a year ago.

“Our sales performance has been consistently strong in recent months, which we believe is driven primarily by the continuation of our deliberate growth initiatives as well as the new luxury bedding models on our floors,” Steve Stagner, Mattress Firm's President and Chief Executive Officer stated in a press release.

Mattress Firm stated that consumer traffic remains to be “choppy,” but the company sees continued improvements in consumer confidence and other economic indicators contributing to higher than expected sales.

Mattress Firm remains committed to create long-term shareholder value as the “largest and fastest growing mattress specialty retailer in the United States.”

At the same time, Mattress Firm raised its full fiscal year guidance. The company raised its net sales guidance to $1.545 billion to $1.585 billion from $1.50 billion to $1.56 billion. Earnings per share is expected to be $1.59 to $1.65, up from a prior guidance of $1.53 to $1.61.

Comparable-store sales growth is expected to be in the low- to mid-single digits, an improvement over a prior guidance of low single-digit growth. Meanwhile, the company expects to open 160 to 180 new stores after previously guiding towards opening 145 to 165 stores.

Shares of Mattress Firm surged to new 52-week highs of $56.65 Monday morning.