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Sleep Country Canada (ZZZ) investor relations material
Sleep Country Canada Q2 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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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