Mattress Firm's Stock Tumbles After Profit Miss And Lowered Outlook

Mattress Firm Holding Corp.'s stock plunged 12% in light premarket trade Friday, after the mattress retailer missed fiscal second-quarter profit and sales expectations, and cut its full-year earnings outlook. For the quarter ended Aug. 4, earnings rose to $21.9 million, or 61 cents a share, from $14.3 million, or 41 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS were 67 cents, below the FactSet consensus of 72 cents. Sales rose 61% to $661.1 million, just shy of the FactSet consensus of $664 million, although same-store sales growth of 2.8% beat expectations of 1.3%. The company raised the midpoint of its full-year sales outlook by $30 million, but cuts hits adjusted EPS guidance to $2.30 to $2.45, from $2.50 to $2.70, according to FactSet. Mattress Firm said the lowered EPS outlook was a result of volatility inside oil-affected markets, and the discontinuation of its Mattress Pro concept. The stock has gained 2.9% over the past three months, while the S&P 500 has lost 7.4%.