Sleep Country Canada
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Sleep Country Canada (ZZZ) investor relations material

Sleep Country Canada has been acquired by Fairfax Financial Holdings Limited

Sleep Country Canada Q2 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Logotype for Sleep Country Canada Holdings Inc
Q2 2024 earnings summary13 Aug, 2024

Executive summary

  • Q2 2024 revenues rose 7.0% year-over-year to $232.5 million, with same store sales up 4.8% and eCommerce revenue share increasing to 25.4% from 21.3%.

  • Gross profit margin improved to 38.1% from 36.4%, and operating EBITDA grew 15.1% to $50.9 million.

  • Net income attributable to the company increased 24.9% to $15.8 million, with diluted EPS up 27.8% to $0.46.

  • The Board declared a dividend of $0.237 per share, payable August 30, 2024.

  • Direct-to-consumer (DTC) businesses drove growth, but a trend of customers trading down to lower-priced mattresses was noted.

Financial highlights

  • Year-to-date 2024 revenues up 4.4% to $442.2 million; YTD same store sales increased 1.7%.

  • YTD gross profit margin rose to 36.5% from 35.3%; operating EBITDA up 4.3% to $89.3 million.

  • YTD net income attributable to the company increased 2.3% to $24.6 million; adjusted net income unchanged at $28.0 million.

  • Diluted adjusted EPS for Q2 rose 28.6% to $0.54; YTD diluted adjusted EPS up 2.5% to $0.82.

Segment performance

  • SCC/Dormez-Vous network posted 0.4% SSS growth in Q2, rebounding from a (10.5%) SSS decline in Q2 2023.

  • Combined DTC SSS grew 25.1% in Q2 and 30.0% in July 2024, driven by promotions and accessory bundling.

  • SCC/DV network experienced an (8.4%) SSS decline in July 2024, reflecting continued trade-down to lower price bands.

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    Frequently asked questions

    Sleep Country Canada Holdings Inc operates a chain of retail stores selling mattresses, bedding, and sleep-related accessories. The company markets both private-label and national brands through physical locations and e-commerce platforms across Canada. The company is headquartered in Brampton, Canada, and its shares are listed on the TSX.