Mattress Firm results offer window into company’s financials pending Tempur Sealy acquisition

HOUSTON — This past week, the investment community got a glimpse of the most recent financial performance of Mattress Firm, which Tempur Sealy announced in May that it was acquiring for $4 billion.

The bedding retail giant ended its fiscal third quarter June 28 with net revenues of $984.1 million, down 5.9% from the $1.05 billion reported the same period last year. For the first three quarters, or nine months of the year, its net revenues totaled $2.95 billion, down 8.4% from the $3.2 billion reported for the same period last year.

Net income totaled $18.8 billion for the third quarter, down from $51.5 billion the same period last year. For the full first nine months of the year, net income totaled $70.5 million, compared to $249.6 million the same period in 2022.

Adjusted EBIDTA, or earnings before interest, taxes, depreciation and amortization, during the quarter totaled $107.million compared to $104.2 million the same period last year. For the first nine months of this year, it totaled $311.4 million, compared to $426.2 million the same period in 2022.

Its adjusted EBITA margin, meanwhile, has remained fairly consistent at 10.9%, compared to 10% the same time last year and 10.6% for the first nine months of this fiscal year, and 13.2% the first nine months of its prior fiscal year.

It also ended the latest quarter with 2,326 stores, compared to 2,334 the same time last year. This too is down from the 3,600 it was operating in 48 states at the time of its October 2018 bankruptcy.

While the company has suffered declines in the past year because of a slowdown in the business, it remains profitable with its remaining brick-and-mortar locations, which on the surface looks to be a positive investment for both investors and Tempur Sealy as it moves forward with the acquisition expected to be completed sometime next year.

As previously reported, Tempur Sealy Chairman and CEO Scott Thompson said that Mattress Firm’s recent quarterly results “were consistent with our expectations. We continue to expect to close the transaction in 2024 and look forward to bringing the Mattress Firm team on board.”

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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