The Company expects the pending acquisition of 28 Mattress Source stores to add incremental sales during the fourth fiscal quarter of 2012 of approximately $2.0 million. Such sales estimates anticipate temporary closings of the stores while rebranding efforts are undertaken. The impact on EPS during the fourth fiscal quarter of 2012 is expected to be a reduction of $0.03 that is attributable to acquisition-related costs. The Company expects that these acquired stores will be accretive to EPS for the fiscal year (52 weeks) ending January 28, 2014 (“fiscal 2013”) by $0.05 to $0.06 as a result of expected increases in sales volumes and improvement in operational efficiencies of the rebranded stores.
The Company is updating its outlook for fiscal 2012 to include the anticipated results from the pending acquisition of 28 Mattress Source stores, actual results through the third quarter, and the Company’s expectation of future results based on information currently known. Furthermore, the Company intends to rebrand approximately 20 additional stores to Mattress Firm during the first quarter of fiscal 2013 that were acquired in December 2010 and are currently operated under the name Mattress Discounters, which will have an effect on fiscal 2012 results. The GAAP EPS guidance for fiscal 2012 includes a noncash impairment charge that will be recorded in the fiscal fourth quarter of $2.1 million, before income tax benefit, related to the Mattress Discounters intangible trade name asset.
Revised Revenue and Diluted Earnings per Share (EPS) Guidance:
Prior Guidance Range
Full Fiscal Year Ending January 29, 2013
|Revenue (in billions)||$1.022 to $1.039||$1.010 to $1.015|
|New Stores||100||115 to 120|
|GAAP EPS||$1.47 to $1.50||$1.18 to $1.21|
|Acquisition-related costs||$0.20 to $0.23||$0.23|
|Secondary offering costs||-||$0.04|
|Noncash impairment charge||-||$0.04|
|Adjusted EPS||$1.67 to $1.73||$1.49 to $1.52|
|Comparable-store sales increase||7% to 9%||6% to 6.5%|