Sleep Country Canada Sees Increased Growth in Q2

Sleep Country Canada Holdings (SCC) has reported revenue was up in the second quarter of 2024, and by more than the modest amount recorded in the first quarter.

Revenue was $232.5 million, a seven per cent or $15.3 million gain from the $217.2 million rung-up for the comparable period last year.

Month-over-month, SCC saw revenue climb by $22.8 million, an increase of almost 11 per cent from the $209.7 million generated in the first three months of the year.

SCC’s direct-to-consumer lines saw the bulk of the company’s growth in the second quarter, as consumers looked for promotions and lower prices.

President and CEO Stewart Schaefer says the trend of consumers trading down to lower priced mattresses has continued in the third quarter. Two of SCC’s banners, Sleep Country and Dormez-vous, are seeing double-digit declines in units in the company’s highest price brand.

“(They) experienced -8.4 per cent same store sales for the month of July, our biggest monthly decline seen this year, with our direct-to-consumer same store sales metric growing 30 per cent, tied to promotional and accessory building,” says Schaefer.

In addition to in-store sales, revenue from SCC’s various e-commerce platforms increased 4.1 per cent year-over-year.

Net income for the period was $15.8 million, compared to $12.7 million in the second quarter of 2023.

SCC is parent company to this country’s largest mattress retail chains, including Sleep Country, Dormez-vous, Endy, Silk & Snow, Hush, Casper and The Rest.

The company has 307 corporate-owned stores and 18 warehouses across Canada.

In July, SCC announced a $1.7-billion deal that, if approved, will see Fairfax Financial Holdings Ltd. buy the retailer and take it private.

Fairfax is led by Canadian billionaire businessman Prem Watsa. The company has invested in a wide array of Canadian companies, including BlackBerry and Recipe Unlimited, owners of Swiss Chalet, Harvey’s and the Keg.