Mattress Firm Holding Corp. (NASDAQ: MFRM) released fiscal first-quarter financial results after markets closed on Thursday. The company had a net loss of $0.17 per share on $839.4 million in revenue compared to consensus estimates from Thomson Reuters that called for a net loss of $0.04 per share on $867.20 million in revenue. The same period from last year had $0.33 in earnings per share (EPS) on $562.55 million in revenue.
Net sales for the first fiscal quarter increased 49.2% as compared with last year, reflecting incremental sales from acquired and new stores, partially offset by a comparable-store sales decline of 1.1%. Comparable-store sales growth in the prior year period was 1.3%.
During the quarter the company acquired 1,065 stores, opened 85 new stores and closed 37 stores, bringing the total number of company-operated stores to 3,472 at the end of the quarter.
In terms of guidance for the fiscal year, the company expects to have EPS in the range of $1.98 to $2.08 and revenues in the range of $3.825 billion to $3.875 billion. There are consensus estimates that are calling for $2.49 in EPS on $3.95 billion in revenue.
Steve Stagner, executive chairman and chairman of the board, commented on earnings:
We are disappointed in our first quarter results, as we experienced unrelated challenges in three primary areas. These issues have been resolved and are largely behind us, however, there was clearly an impact to sales in Q1 that continued early into Q2. Due to our results to date, we are revising our guidance for the full year.
Trends have returned to positive low-single digit comparable-store sales growth over Memorial Day and in the days since the holiday, in-line with our revised guidance for the remainder of the year. This gives us additional confidence that we have put these obstacles behind us. Despite a challenging quarter, I am proud to say that our team worked tirelessly to move the organization past these challenges, and we are now better positioned to execute on our long-term strategy, as we build a national chain under the Mattress Firm brand.
Shares of Mattress Firm closed Thursday down 2.2% at $33.58, with a consensus analyst price target of $44.56 and a 52-week trading range of $30.01 to $65.51. Following the release of the earnings report the stock was down over 11% at $29.75 in the after-hours trading session.