Houston-based, Mattress Firm Holding Corp. warns it expects to post a loss for the year as it moves to rebrand its more than 3,400 stores.
Yesterday, Mattress Firm booked a $139 million charge tied to the store rebranding, which pushed it to a quarterly loss. Shares were down 46% over the past 12 months and fell 11% in after-hours trading to $29.60 – below the 52-week low set last month.
Mattress Firm now projects a loss of $1.57 to $1.62 a share for the year that ends Jan. 31 on sales of $3.83 billion to $3.88 billion, compared with a profit of $1.82 a share on $2.54 billion in sales last year.
On an adjusted basis, Mattress Firm estimated a profit of $1.98 to $2.08, compared with $2.36 a year earlier.
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