TORONTO, Nov. 11, 2021 /CNW/ - Sleep Country Canada Holdings Inc. ("Sleep Country" or the "Company") (TSX: ZZZ) today released its financial results for the third quarter and nine months ended September 30, 2021. Sleep Country achieved growth across several key metrics from Q3 2020 to Q3 2021 including increases in revenues by 13.0% and adjusted net income1 by 19.5%. The Company continued to execute against its purpose-driven strategy and growth platforms to solidify its position as Canada's leading omnichannel and direct-to-consumer retailer.
All financial results are reported in Canadian dollars unless otherwise stated.
Third Quarter Highlights
- Revenues increased by $31.4 million or 13.0% from $242.4 million in Q3 2020 to $273.8 million in Q3 2021
- Same Store Sales (SSS)1 increased by 10.6% from Q3 2020 to Q3 2021
- eCommerce sales represented 17.9% of revenues in Q3 2021
- Gross profit margin increased by 2.8% from 34.7% in Q3 2020 to 37.5% in Q3 2021
- Operating EBITDA1 margin remained unchanged at 26.9% from Q3 2020 to Q3 2021
- Adjusted Net income1 increased by $6.5 million or 19.5% from $33.2 million in Q3 2020 to $39.7 million in Q3 2021
- Diluted adjusted earnings per share1 (EPS) increased by $0.17 or 18.9% from $0.90 in Q3 2020 to $1.07 in Q3 2021
- Announced the expansion of the Company's partnership with Walmart Canada to open 10 new pilot "Sleep Country/Dormez-vous Express" stores in Walmart Supercentres, all stores scheduled to open in Q4 2021
- Exclusive retail and digital partnership with Casper Sleep Inc. to retail its core-collection mattresses in Canada
- Endy exceeded 500,000 customer transactions since its inception and was recognized as a Great Place to Work® Canada for its third consecutive year as well as joined the ranks of 2021 Best Workplaces™ for Startup's and 2021 Best Workplaces™ in Retail and Hospitality
- Subsequent to quarter-end, the Company acquired 52% of the issued and outstanding common shares of Hush Blankets Inc. ("Hush"), a direct-to-consumer sleep retailer, for cash consideration of $25 million, the second largest acquisition in the Company's history
- Subsequent to quarter-end, the Company's senior credit agreement for its existing credit facility of $260 million was amended and the maturity date was extended to October 22, 2026
CEO and President Commentary
"We started Sleep Country 27 years ago to transform the way Canadians shopped for mattresses. Along the way, we've pushed the boundaries and differentiated ourselves in Canada's sleep space. I'm incredibly proud to have been part of this journey, and of our best-in-class team whose solid execution of our strategic roadmap across all our brands and channels delivered the strongest quarter in our company's history," said Dave Friesema, CEO, Sleep Country.
"With record performance in revenue, gross profit margin and net income, we continued to drive profitable growth this quarter and made significant progress on our plans by strengthening our omnichannel business through transformative partnerships with Walmart Canada and Casper," said Stewart Schaefer, President, Sleep Country.
"Looking forward, we are poised to realize the full potential of our acquisition of Hush, and our other thoughtful investments in our sleep ecosystem, infrastructure and supply chain. As sleep wellness continues to be a fundamental part of our customers' well-being, we remain committed to our purpose of transforming lives through sleep and providing our customers with world-class experiences across our entire sleep ecosystem," added Schaefer.