Sleep Country (TSX:ZZZ) is a Toronto-based company that is engaged in retailing mattresses and bedding-related products in Canada. Its shares have plunged 16% in 2022 as of mid-afternoon trading on February 22. However, this TSX stock is still up 19% in the year-over-year period.
Investors can expect to see the company’s final batch of 2021 earnings on March 4. It unveiled its third quarter 2021 results last November. Revenues rose 13% year-over-year to $31.4 million. Meanwhile, same store sales rose 10.6% from the previous year. Sleep Country’s e-commerce sales made up 17.9% of revenues in the third quarter of 2021.
The company’s adjusted net income rose 19.5% year-over-year to $39.7 million. Meanwhile, adjusted diluted earnings per share (EPS) jumped 18.9% from the previous year to $1.07. Overall, Sleep Country achieved record results in revenues, gross profit margin, and net income in its most recent quarter. It also expanded its partnership with Wal-Mart to open 10 “Sleep Country/Dormez-vous Express” stores. Those stores were set to open in the fourth quarter of 2021.
These recent results are very encouraging. Sleep Country has set itself apart in the face of the COVID-19 pandemic due to its strong e-commerce offerings.
Shares of Sleep Country last had a price-to-earnings ratio of 13, putting it in attractive value territory. It currently possesses an RSI of 25, which puts Sleep Country stock at technically oversold levels. I’m looking to buy this promising TSX stock on the dip in late February.
