(Graphic: Business Wire)

Mattress Firm Holding Corp. (the “Company”) (NASDAQ:MFRM) today announced its financial results for the third fiscal quarter (13 weeks) ended October 29, 2013. Net sales for the third fiscal quarter increased 17.7% to $326.2 million, reflecting comparable-store sales growth of 2.9% and incremental sales from new and acquired stores. The Company reported third fiscal quarter earnings per diluted share (“EPS”) on a generally accepted accounting principles (“GAAP”) basis of $0.53, and EPS on a non-GAAP adjusted basis, excluding ERP system implementation costs (“Adjusted”), of $0.55. Diluted EPS on a GAAP basis and Adjusted basis are reconciled in the table below:
       

Third Fiscal Quarter Reconciliation of GAAP to Adjusted EPS

See “Reconciliation of Reported (GAAP) to Adjusted Statements of Operations Data” for Notes
 
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 30, 2012     October 29, 2013 October 30, 2012     October 29, 2013
GAAP EPS $ 0.37 $ 0.53 $ 0.95 $ 1.30
Acquisition-related costs (1) 0.05 - 0.20 0.01
Secondary offering costs (2) 0.04 - 0.04 -
ERP system implementation costs (3)   -   0.02   -   0.05
Adjusted EPS* $ 0.47 $ 0.55 $ 1.19 $ 1.36
 
* Due to rounding to the nearest cent, totals may not equal the sum of the lines in the table above.
 

“As a result of initiatives we recently put in place combined with the early benefits we are experiencing from a renewed commitment of manufacturer advertising spend, we successfully drove traffic and comparable store sales growth in our third fiscal quarter,” stated Steve Stagner, Mattress Firm’s president and chief executive officer. “We implemented a number of sales initiatives during the quarter that encouraged our sales associates to improve their productivity and capture a higher percentage of sales from customers. While these initiatives resulted in an anticipated reduction in margins, we experienced a positive momentum shift in comparable store sales toward the end of the quarter that has continued into our fourth quarter. Furthermore, our strong pace of organic growth continued as we added 40 new stores to our base this quarter. We remain focused on our strategy of driving continued sales growth and building relative market share.”

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