Sleep Country Sold One in Four Mattresses in Canada Last Year

Sleep Country Canada Holdings (SCC) sold one of every four mattresses purchased by Canadian consumers in 2022, solidifying its position as the dominant player in this country’s bedding market. That’s despite the fact its mattress sales shrank 1.4% on a year-over-year basis when compared to 2021.

The publicly held parent company of Sleep Country, Dormez-vous, Endy, Silk & Snow and Hush recently reported sales for the three months ending December 30, 2022, were $243.0 million, down 10.4% from 271.2 million for the same period in 2021, driven by a 11.5% decrease in same store sales.

The company reported mattress sales for quarter totalled $180.6 million, down 12.9% from the comparable period’s $207.4 million while sales of accessories fell 2.2% to $62.4 million.

SCC also noted its various e-commerce platforms accounted for 21.1% of total revenue during the fourth quarter – approximately $51.3 million. In dollar terms, that’s 9.5% lower than the $56.7 million (or 20.9% of revenue) generated in the comparable period.

Net income was pegged at $40.8 million or $1.14 per share, compared with the comparable period’s $26.4 million or 72 cents per share – a boost of 58.3% on a per share basis.

At the end of the fourth quarter, Sleep Country Canada acquired substantially all of the assets of Silk & Snow, one of this country’s fastest growing direct-to-consumer e-commerce bedding retailers, for cash consideration of $24.1 million upfront and up to an additional $19.5 million based on the earnings levels achieved during the three-year period beginning fiscal 2023.

For the year ending December 31, 2022, SCC reported revenue of $928.7 million, a gain of 0.9% from the $920.2 million for the previous year, which the company attributed to incremental gains made because of the acquisition of Hush – the direct-to-consumer blanket retailer – in October 2021 as well as the opening of four new brick-and-mortar stores offset by a 1.8% decline in same stores sales.

For the year, SCC said mattress sales totaled $708.1 million, a 1.4% decline from the $718.2 million sold in 2021. According to the Retail Commodity Survey published by Statistics Canada, consumers in this country spent $2.75 billion purchasing mattresses in 2022, giving SCC a market share in the category of 25.5%. That’s down from the 28.2% share for the prior year.

Meanwhile, sales of accessories totaled $220.6 million for the year, up 9.2% from $202.0 million.

E-commerce accounted for 19.6% of revenue in 2022 – approximately $182.0 million – compared to 23.5% of revenue in 2021. In dollar terms, that’s a 15.8% drop from the $216.2 million the platforms sold the prior year.

Net income for the year ended was $110.5 million or $3.04 per share, compared to $88.6 million or $2.41 per share – a 26.1% advance on a per share basis.

At the end of 2022, SCC operated 289 brick-and-mortar stores across the country – 226 under the Sleep Country banner and another 63 under the Dormez-vous banner in Quebec. The company intends to open of six new stores in 2023.

It also operates ‘express’ – or in-store gallery locations – in 17 Walmart Canada supercentres in Ontario and Quebec.

It also operates three DTC platforms including Endy, Hush and Silk & Snow.

In April 2023, SCC also acquired all of the Canadian assets of Casper Sleep – the U.S. based mattress retailer – including the six brick-and-mortar stores it operates north of the border.

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