SCC sets sales, earnings record for first quarter
TORONTO – Sleep Country Canada Holdings (SCC), parent to this country’s largest mattress and sleep goods retailers, unsurprisingly set another new record high for both sales and earnings during the first quarter of 2022, noting growth was achieved across all its key metrics although its pace was slower in some cases.
The publicly held merchant reported revenues for the three months ending March 31, 2022, were $207.0 million, up 13.1% from the comparable period’s $183.0 million, driven by an 8.8% uptick in same store sales.
Mattress sales climbed 9.5% to $159.0 million during the first quarter, from $145.2 million for the same period last year. Meanwhile, accessories accounted for sales of $48.0 million, a 27% jump from the comparable period’s $37.8 million.
E-commerce accounted for 20.8% of revenues during the period – or $43.1 million. In a sign that consumers are beginning a return to in-store shopping as pandemic-imposed restrictions are lifted across the country, that’s down from 2021’s first quarter ratio of 29.3% or $53.6 million for a decline of 19.6%.
Adjusted net income was $20.8 million or 56 cents per share, compared with $9.6 million or 26 cents per share last year – a rocket-fueled leap of 115.4% on a per share basis.
The company also noted the Toronto Stock Exchange approved its latest Normal Course Issuer Bid (NCIB) that went into effect on March 9, 2022. During the first quarter, SCC purchased and cancelled 85,073 shares for total consideration of $2.4 million.
SCC’s board of directors also approved a 10% hike in its quarterly dividend to 21.5 cents per share, payable to eligible shareholders of record at the close of business on May 20, 2022.
The company also noted several notable achievements during the first quarter of 2022, including:
- Pledging sleep essentials valued over $250,000 to the Global Aid Network to support Ukrainians displaced by the war in Ukraine;
- Celebrating World Sleep Day by donating $100,000 donation to the Canadian Mental Health Association;
- Announcing the launch of Sleep Country and Dormez-vous stores across all Loblaw online platforms;
- Endy winning the Best Workplaces for Women award by Great Places to Work 2022; and
- Opening a new store in Thornhill, Ontario to boost total store count to 286.
“We are very proud to deliver the best Q1 in our company's history, despite ongoing challenges due to COVID-19, challenging supply chain logistics, volatile interest rates, inflation, the war in Ukraine and a drop in consumer confidence. Our strong performance reinforces the resilience of our sleep ecosystem, our proactive measures and our best-in-class team to provide a seamless customer experience across all our brands and channels,” SCC president and chief executive officer Stewart Schaefer said in a statement.
“Looking ahead, we are well positioned and diversified in our blend of merchandise and channel agnostic approach to weather the changing economic climate and continue to lead Canada’s sleep space with our frictionless digital experience, multiple distribution channels, powerful partnerships and the most innovative and relevant sleep brands in the country,” he added.
At the end of March 2022, SCC operated some 286 stores and 20 warehouses across the country as well as three banners: Sleep Country, Dormez-vous and Endy, this country’s largest digital mattress specialist. The company is also the exclusive Canadian distributor of three foreign bed-in-a-box brands: Casper, Purple and Simba.