HOUSTON (AP) — Mattress Firm's fiscal second-quarter net income increased 40 percent, benefiting from improved sales and lower acquisition-related costs.
But the mattress company's adjusted earnings and revenue fell short of analysts' estimates, and it cut its full-year adjusted earnings and revenue forecasts on Friday.
For the period ended July 30, Mattress Firm earned $14.1 million, or 41 cents per share. That compares with $10.1 million, or 30 cents per share, a year earlier.
Acquisition-related costs were $124,000 in the latest quarter, down from $5.9 million in the prior-year period.
Removing acquisition-related costs and other items, earnings were 43 cents per share. Analysts, on average, expected earnings of 51 cents per share, according to a FactSet poll.
Revenue for the Houston company rose 16 percent to $302.5 million from $262 million, helped by sales from new and acquired stores. Sales of conventional and specialty mattresses climbed, with furniture and accessories sales up as well.
But Wall Street was looking for higher revenue of $322.6 million.