Sleep Country Canada Sales Edge Up Slightly in Q1

Sleep Country Canada Holdings, parent company to this country’s largest mattress retail chains, has reported revenue for the first quarter of 2024 climbed modestly, although both same store sales and earnings declined.

Revenue was $209.7 million, a minor 1.6 per cent gain from the $206.5 million rung-up for the comparable period last year. Management attributed the uptick to incremental revenue earned from new stores, wrap stores opened in 2023, and the acquisition of Casper Canada, completed in April 2023. Same store sales declined 1.6 per cent.

SCC’s various e-commerce platforms accounted for 24.5 per cent of revenue during the period, up 22.3 per cent year-over-year. In dollar terms that’s an 11.6 per cent increase to an estimated $51.4 million from the comparable period’s $46 million.

Mattress sales climbed 1.4 per cent to $157.6 million, while accessory sales advanced two per cent to $52.1 million.

Net income for the period was $8.7 million or 26 cents per share, compared to $11.3 million or 33 cents per share – a decrease of 21.2 per cent on a per share basis.

“This quarter’s shopping patterns remained volatile as consumers continue to navigate these uncertain times,” said SCC president and CEO Stewart Schaefer in a statement. “Despite this pressure, we saw revenues increase and delivered an improvement in our gross margin by 50 basis points year-over-year as we continue to source our merchandise more efficiently.”

SCC management noted the company launched a new partnership with Vancouver-based Veritree during the first quarter, to help mitigate climate change by planting a tree for every delivery completed through their green glove delivery program.

It donated $100,000 to the Canadian Mental Health Association, too, advocating for the adoption of healthy sleeping habits by all Canadians.

During the period, SCC opened four new Sleep Country and Dormez-vous banner stores, two each, bringing its total unit count to 305.

After the end of the first quarter, the company completed its acquisition of the remaining 32 per cent of the outstanding common shares of Hush Blankets.

“As Sleep Country enters its 30th year, we are more bullish than ever before about the future of our sleep ecosystem, which has been transformed over the last few years,” said Schaefer. “With our evolved business model, we are better positioned today than at any other point in our history to drive strong performance for years to come.”

Schaefer also told shareholders 2024 will see the evolution of their acquired digital brands while adding more brick-and-mortar stores to their network.

SCC operates a total of seven banners, including Sleep Country, Dormez-vous, Endy, Silk & Snow, Hush Blankets, Casper and The Rest.

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