by HOUSTON — Bedding retailer Mattress Firm reported a 5% decrease in net revenues for its first fiscal quarter ended Jan. 2 along with a drop in net income during the same period.
Net revenues during the quarter totaled $924.8 million, down from $973.3 million for the same period the year prior. Its store count also fell slightly to 2,319 from 2,333 compared to the prior year’s first fiscal quarter ended Dec. 27, 2022.
Net income totaled $8.9 million, down from $22 million, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) also fell during the first quarter to $85.3 million from $95.5 million, a 10.7% decrease. Adjusted EBITDA margins were 9.2% for the first quarter compared to 9.8% a year earlier.
The retailer also reported $13.1 million in a line item called strategic initiatives, compared to $9.1 million a year earlier. The company described this as the “exploration, development and execution of strategic initiatives and opportunities” primarily related to the anticipated acquisition of Mattress Firm by Tempur Sealy, which is expected to close sometime later this year.
Net interest expenses during the quarter totaled $29.4 million, compared to $27 million, and income tax expenses during the quarter totaled $4 million, compared to $7.5 million during the first quarter of the prior year.
