Sleep Country Canada (TSX:ZZZ) is a Toronto-based company that is engaged in retailing mattress and
bedding-related products in Canada. Shares of Sleep Country have dropped 25% in 2022 as of close on
August 25. That has pushed the stock into negative territory in the year-over-year period.
This company released its second quarter fiscal 2022 earnings on July 28. Sleep Country has continued
to deliver strong earnings in the wake of the COVID-19 pandemic. Total revenues climbed 18% year-
over-year to $227 million. Meanwhile, it delivered same-store sales growth of 15%. E-commerce sales
rose 18% compared to the previous year.
Sleep Country reported adjusted net income of $25.7 million in the second quarter of 2022 – up 42%
from the second quarter of fiscal 2021. Moreover, adjusted diluted earnings per share (EPS) jumped 43%
to $0.69.
On the business front, the company launched an interactive sleep app called “All for Sleep App”.
Moreover, it increased its store count to 287 with the opening of another retail location in Stittsville,
Ontario.
Overall, it was another impressive quarterly report for Sleep Country. In the year-to-date period, it
posted revenue growth of 15% to $434 million. Meanwhile, adjusted net income was reported at $46.5
million – up from $27.7 million in the previous year. Sleep Country stock currently possesses an
attractive price-to-earnings ratio of 10. It last paid out a quarterly dividend of $0.215 per share. That
represents a 3% yield.
