Sleep Country Canada had its best first quarter ever this year as the company launched Sleep Country and Dormez-vous stores on all Loblaw online platforms extending its reach to millions more customers every week.
Stewart Schaefer, President and CEO of Sleep Country, said the company’s strong financial results came 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.
“I am pleasantly surprised that we were able to navigate around all the other crazy pandemic things that people are dealing with and higher inflation and the oil prices and consumer confidence,” he said. “We’ve been very proactive and started a process in terms of building up our inventory which we do believe that inventory is the new oil. I think that’s been key and we’ve been able to definitely expand our assortment of goods.
“I think the consumers just turned to us and all the partnerships we created are definitely building on our touch points in terms of being able to grow the business. It was pleasantly, surprisingly good all around.
“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.”
Here are some key financial results for Sleep Country in the first quarter of this year:
- Revenues increased by $24 million or 13.1 per cent to $207.0 million in Q1 2022 from $183 million in Q1 2021;
- Gross profit margin increased by 710 basis points to 34.6 per cent in Q1 2022 from 27.5 per cent in Q1 2021;
- Operating EBITDA increased by $15.2 million or 48.5 per cent to $46.7 million in Q1 2022 from $31.5 million in Q1 2021;
- Operating EBITDA margin increased by 540 basis points to 22.6 per cent in Q1 2022 from 17.2 per cent in Q1 2021;
- Same Store Sales increased by 8.8 per cent in Q1 2022 from Q1 2021;
- eCommerce sales represented 20.8 per cent of revenues in Q1 2022;
- Net income attributable to the Company increased by $9.7 million or 111.8 per cent to $18.4 million in Q1 2022 from $8.7 million in Q1 2021;
- Adjusted net income attributable to the company increased by $11.2 million or 116.2 per cent to $20.8 million in Q1 2022 from $9.6 million in Q1 2021;
- Diluted earnings per share increased by $0.26 or 113 per cent to $0.49 in Q1 2022 from $0.23 in Q1 2021;
During the quarter the retailer opened a new store in Thornhill, Ontario to boost total store count to 286.
Schaefer said there is likely to be another six to eight stores the retailer is planning to open this year.
“What the pandemic taught us, and it’s coming out of the pandemic, is that the stores are more important than ever. And people want to engage in customer experience which is pleasantly surprising also,” he said.
“If you didn’t have ecommerce during COVID you were in big trouble but as the world opens up if you don’t have brick and mortar retail you’re in trouble. So we’re definitely feeling good about our strategic positioning in terms of online and brick and mortar. So that’s going to continue.”
Sleep Country is Canada’s leading specialty sleep retailer with a national retail store network and multiple robust eCommerce platforms. Besides the corporate-owned stores, it also has 20 warehouses across Canada and operates under retail banners: Sleep Country Canada, with omnichannel operations in Canada excluding Québec; Dormez-vous with omnichannel operations in Québec; Endy, Canada’s leading direct-to-consumer online sleep solutions retailer; and Hush Blankets Inc., one of Canada’s fastest-growing digital retailers.
