Sleep Country revenues jump 11 per cent in Q2 on mattress and accessories sales

TORONTO – Sleep Country Canada Holdings Inc. (TSX:ZZZ) says revenues grew nearly 11 per cent in its second quarter, helped by stronger sales of mattresses and accessories.

The Toronto-based retailer, which returned to the public markets last month after seven years as a private company, posted revenues of $102.5 million in the quarter, compared with $92.7 million a year earlier.

The stronger results were mainly from growth of 7.7 per cent in same-store sales, an industry barometer that tracks locations open more than a year.

On an adjusted basis, net income increased 91 per cent to $7.5 million from $3.9 million.

Mattress sales increased 9.8 per cent, while accessory revenue grew 14.5 per cent, it said.

The financial results reflect the business of Sleep Country Canada Inc. before it was acquired by the holding company as part of its initial public offering.

“The company is well-positioned to continue to produce growth, by both increasing same store sales and expanding our store network,” said CEO David Friesema in a statement late Wednesday.

“We intend to cost-effectively open between eight and 12 new stores annually over the next five to seven years.”

Sleep Country owns and operates 218 stores across Canada under its own name and the Dormez-Vous? banner.