Mattress Firm Q2 Profit Tops View, Comps Rise; To Buy Sleep Train For $425 Mln

(RTTNews) - Mattress Firm Holding Corp. (MFRM), a specialty retailer of mattresses and related products and accessories, reported Thursday that its second-quarter net income was $14.30 million, compared to $14.12 million last year. Earnings per share was $0.41, same as last year. Adjusted earnings per share, which excluded certain items, was $0.61, compared to $0.43 a year ago.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 35.5 percent to $409.95 million from last year's $302.54 million, reflecting comparable-store sales growth of 9.7 percent and incremental sales from new and acquired stores. Analysts were looking for revenues of $409.99 million.

Separately, Mattress Firm announced that it has entered into an agreement to acquire Sleep Train, Inc., a West Coast based bedding specialty retailer, for an aggregate purchase price of $425 million.

As further consideration, the company has agreed to assume certain additional liabilities totaling approximately $15 million.

Sleep Train operates approximately 310 specialty mattress retail stores, and reported net sales of $471 million for the 2013 fiscal year, according to Furniture Today.

The closing of the acquisition is expected to occur by the end of the fourth fiscal quarter of 2014.