Michael J. Knell
\nTORONTO \u00e2\u20ac\u201d Sleep Country Canada Income Fund, parent of this country\u00e2\u20ac\u2122s largest sleep shop chain and two other retail bedding banners, said revenues shot up 42.3% in the second quarter as net earnings leaped nearly 45%.
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\nThe fund said sales in the quarter were C$74.6 million, compared with C$52.5 million in the comparable 2012 quarter. Net earnings came to C$6.8 million, or 48 Canadian cents per trust unit, compared with C$4.7 million, or 34 cents per unit, last year.<\/p>\n
Sleep Country\u00e2\u20ac\u2122s preferred performance measure is earnings before interest, taxes, depreciation and amortization, or EBITDA, which fell 6.2% to C$7.4 million in the latest quarter, \u00e2\u20ac\u0153reflecting the expected impact of expansion spending at Dormez-vous, offset by positive contributions from the Sleep Country and Sleep America banners,\u00e2\u20ac\u009d the fund said.<\/p>\n
Sales for the 116-unit Sleep Country Canada banner were up 17.4% quarter-over-quarter, with same-store sales up 6.4%. Sales by the Dormez-vous banner in Quebec rose 4.5%, while the Sleep America banner in Arizona recorded a 20.1% sales increase. The fund acquired both regional chains earlier this year.<\/p>\n
In the six months, total sales rose 42.1% to C$139.3 million. Net earnings were C$11.3 million, or 80 Canadian cents per unit, a substantial improvement from C$8.3 million, or 59 cents per unit, in last year\u00e2\u20ac\u2122s first half. EBITDA increased 7.5% to C$14.1 million.<\/p>\n
\u00e2\u20ac\u0153Sleep Country continued to perform well in the second quarter, with strong contributions from our new banners and continued growth in Sleep Country\u00e2\u20ac\u2122s base business,\u00e2\u20ac\u009d said CEO Stephen Gunn. \u00e2\u20ac\u0153We believe we are continuing to significantly outperform the industry in terms of revenue and market-share growth.\u00e2\u20ac\u009d<\/p>\n
He pegged total mattress industry growth as between 3% and 5% in the second quarter.<\/p>\n
\u00e2\u20ac\u0153The development of our new growth platforms in Quebec and Arizona is proceeding according to plan,\u00e2\u20ac\u009d said Christine Magee, president and advertising spokesman.<\/p>\n
Dormez-vous opened four stores in the quarter and plans three more by the end of the year, she said, adding Sleep America opened two stores in the quarter and will add up to four more before year\u00e2\u20ac\u2122s end.<\/p>\n
Gunn said, \u00e2\u20ac\u0153We expect the expansion of Dormez-vous will continue to have a negative impact on EBITDA over the next year or so, similar to our experience with expansions in other regions of the country.\u00e2\u20ac\u009d<\/p>\n
He said the fund had passed several times on a chance to buy Sleep Country USA, which owner Simmons now plans to sell to U.S.-based The Sleep Chain. He said the U.S. chain \u00e2\u20ac\u0153has a different business model.\u00e2\u20ac\u009d<\/p>\n
Gunn also noted the fund wasn\u00e2\u20ac\u2122t in any rush to add Chinese-made bedding to its offerings.<\/p>\n
At the end of the quarter, Sleep Country Canada Income Fund operated a total of 162 stores, compared to 101 last year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Michael J. Knell TORONTO \u00e2\u20ac\u201d Sleep Country Canada Income Fund, parent of this country\u00e2\u20ac\u2122s largest sleep shop chain and two other retail bedding banners, said revenues shot up 42.3% in the second quarter as net earnings leaped nearly 45%.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-1477","post","type-post","status-publish","format-standard","hentry","category-furniture-world-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/1477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/comments?post=1477"}],"version-history":[{"count":0,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/1477\/revisions"}],"wp:attachment":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/media?parent=1477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/categories?post=1477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/tags?post=1477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}