Mattress Firm Shares Up Despite Top- and Bottom-Line Q1 Misses

Mattress Firm MFRM shares popped higher in Tuesday's extended-hours session following the firm's first-quarter results. Quarterly sales jumped 20.9 percent year over year to $333.5 million. Despite the increase, revenue missed analyst expectations of $337.55 million by 1.2 percent. Same-store sales rose by 4.3 percent compared to the same quarter last year. The sales mix shifted toward conventional mattresses from specialty mattresses. Mattress Firm reported non-GAAP earnings for the quarter were $0.31 per share. This is a 13.89 percent miss from the analyst consensus of $0.36. Earnings are down 16.21 percent compared to the same quarter last year. Higher cost of goods sold as a percentage of sales (63.8 percent versus 62.2 percent), along with the drop in revenue, is responsible for much of the earnings drop. Related: SunTrust Issues Report On Mattress Stocks The positive part of the report was better-than-expected guidance. Mattress Firm sees sales ranging from $1.5 billion to $1.56 billion for the full year, compared to $1.46 billion and $1.52 billion previously estimated by the company. The analyst consensus prior to this announcement was $1.5 billion. CEO Steve Stagner commented, "With an accelerated infrastructure build up to support additional store growth and the recent unprecedented level of condensed product changes to our floor materially behind us, we are focused on improving our EPS performance as we move through the year. Initial consumer acceptance of the new products, coupled with a focused and well-prepared sales team, helped generate strong sales momentum over the Memorial Day holiday. Furthermore, we are excited to have added 148 stores through organic growth and acquisitions during the first quarter, which fortifies our presence in key markets." Shares of Mattress Firm are currently trading up 1.1 percent to $46. Shares had reached as high as $48.25.