UPDATE: Mattress Firm Posts Better-Than-Expected Q2 Earnings, Plans To Acquire Sleep Train For $425M

Mattress Firm Holding

reported better-than-expected second-quarter earnings and announced its plans to acquire Sleep Train for $425 million in cash and stock. The Houston, Texas-based company posted a quarterly profit of $14.3 million, versus $14.1 million, in the year-ago period. Per-share earnings came in flat at $0.41 in the quarter. Excluding one-time items, the company's earnings increased to $0.61 per share from $0.43 per share. Mattress Firm had earlier expected adjusted earnings of $0.58 to $0.61 per share. Its net sales jumped 35.5% to $410.0 million. However, analysts were expecting earnings of $0.60 per share on revenue of $406.56 million. Mattress Firm's comparable-store sales surged 9.7% in the quarter. Its expenses rose around 43% to $137.5 million. Its adjusted operating income margin widened to 9.3% of net sales, versus 8.9% in the year-ago quarter. During the quarter, Mattress Firm opened 53 new stores, closed 5, and acquired 67 stores. At the end of the second quarter, Mattress Firm had cash and cash equivalents of $18.1 million. Steve Stagner, Mattress Firm's president and chief executive officer said, “As external economic factors, such as consumer confidence, continue to show improvement, we believe our Company is well-positioned to take advantage of the potential ahead. Our commitment to driving increased relative market share across the chain should result in long-term growth of shareholder value supported by our unwavering confidence in our ability to deliver.” Mattress Firm shares declined 0.42% to close at $56.81 yesterday.