Paul Bagnell

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Shares of Sleep Country Canada Holdings Inc. surged in early trading Wednesday, after the company exceeded market expectations with what it called “record breaking” fourth-quarter results.

The company reported $0.74 in adjusted earnings per share, compared to the $0.53 expected by analysts surveyed by Bloomberg. Net income was $26.6 million, and was 89.4 per cent greater, year-over-year.

On a conference call led by Sleep Country Chief Executive Officer Dave Friesema on Wednesday, executives said the company continues to benefit from Canadians spending more money on their home living environments during the pandemic, and are putting greater emphasis on the health benefits of a good night’s sleep. The company also said it is winning market share from competitors.

Most key financial metrics showed dramatic growth in the quarter. Same-store sales rose by 32.4 per cent, total sales rose 33.4 per cent to $248.9 million, and the company’s e-commerce segment experienced its third consecutive quarter of sales growth greater than 100 per cent.

The strong e-commerce numbers helped the company deliver robust sales growth even though many of its stores were ordered to close amid second-wave pandemic control measures in the quarter. Sleep Country said stores were closed for 10.5 per cent of the days they normally would have been open during the quarter. Additionally, 65 per cent of its stores were closed during Boxing Week in late December, which is traditionally Sleep Country’s strongest sales week.

Sleep Country Canada operates 281 stores in Canada. In Quebec it operates 61 stores under the name Dormez-Vous? It also owns Endy, the “mattress in a box” retailer.