Mattress Tub & Past on Thursday mentioned gross sales plunged by 28% within the fiscal second quarter, as the house items retailer struggled to attract prospects.
Right here’s how the retailer did within the three-month interval ended Aug. 27 in contrast with what analysts have been anticipating, based mostly on Refinitiv knowledge:
- Loss per share: $3.22 adjusted vs. $1.85 anticipated
- Income: $1.44 billion vs. $1.47 billion anticipated
The corporate’s web loss widened considerably to $366 million, or $4.59 per share, from $73 million, or 72 cents per share, a yr earlier. Its web gross sales dropped from $1.99 billion within the year-ago interval.
The quarterly report doesn’t mirror the corporate’s newest turnaround plan. In late August, it introduced plans to shake up its merchandising technique, and strengthen its namesake shops and child items chain, BuyBuy Child. It additionally introduced cost-cutting measures, together with layoffs and shutting about 150 Mattress Tub & Past shops.
Interim CEO Sue Gove mentioned in a information launch Thursday that the corporate’s quarterly outcomes don’t mirror the progress it has made in latest weeks. As an illustration, she mentioned the corporate is fixing stock issues by dashing up markdowns of some merchandise. She mentioned Mattress Tub is “assured that our present liquidity will allow the mandatory modifications we’re implementing.”
Gove mentioned the corporate’s loyalty program, Welcome Rewards, has grown by greater than 1.3 million for the reason that finish of August, bringing it to a complete of 6.4 million members because it launched this summer season. She mentioned it’s reducing prices by about $250 million for the second half of the fiscal yr, as it really works to ramp up gross sales.
Mattress Tub faces a number of vital challenges, together with mounting debt, vacant management roles and tense relationships with distributors. As the corporate gears up for the essential vacation season, it’s led by Gove, an interim CEO, and interim CFO Laura Crossen. Its board pushed out former CEO Mark Tritton in June, and CFO Gustavo Arnal died by suicide in early September.
In late August, Mattress Tub obtained some reduction by securing greater than $500 million of latest financing, together with a $375 million mortgage.
The approaching months will check whether or not the retailer can get scorching vacation gadgets and well-liked nationwide manufacturers, that are pivotal to its newest technique. In line with former firm executives, Mattress Tub has had strained relationships with suppliers — and will face a repeat of two Christmases in the past, when it didn’t have a number of scorching merchandise from well-known nationwide manufacturers.
In a information launch, Gove mentioned working with Mattress Tub’s suppliers has “been an necessary focus space” and mentioned its debt and liabilities with them “are significantly more healthy than within the prior quarter.”
As of Wednesday’s market shut, Mattress Tub’s shares are down about 56% to this point this yr. The corporate’s market worth is $516.5 million.
