Mattress Firm Holding Corp. (NASDAQ: MFRM)
Mattress Firm Holding Corp. (MFRM), a mattress retail company yesterday reported their fiscal first quarter financial results. Mattress Firm reported first quarter earnings of a loss of $0.10 per share which fell short of analyst expectations of a loss of $0.04 per share. Mattress Firm reported first quarter revenues of $839.4 million which fell short of analyst expectations of $867.2 million.
Mattress Firm Holding Corp. CEO’s Comments
“We are disappointed in our first quarter results, as we experienced unrelated challenges in three primary areas,” stated Steve Stagner, executive chairman and chairman of the board. “These issues have been resolved and are largely behind us, however, there was clearly an impact to sales in Q1 that continued early into Q2. Due to our results to date, we are revising our guidance for the full year.”
Mr. Stagner concluded, “Trends have returned to positive low-single digit comparable-store sales growth over Memorial Day and in the days since the holiday, in-line with our revised guidance for the remainder of the year. This gives us additional confidence that we have put these obstacles behind us. Despite a challenging quarter, I am proud to say that our team worked tirelessly to move the organization past these challenges, and we are now better positioned to execute on our long-term strategy, as we build a national chain under the Mattress Firm brand.” Business Wire
MFRM Technical Analysis
MFRM opened trading yesterday at $34.34 which was down from the previous days trading of $34.34. MFRM closed trading yesterday at $33.58 and crashed down after market to $30.00, equivalent to a 11% decrease from the closing price. Taking a look at the daily chart we can see the last time MFRM traded below these levels was back on October 28th 2013 when it traded at $29.73 . Taking a closer look at the daily chart we can see that MFRM has been on a downward trend dating back to April 20th when it traded at $44.27. MFRM has a float of 15.39 million shares and traded 2.57 times the normal daily trading volume on Thursday. For trading purposes, I would like to see MFRM open trading on Friday below $31.25 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Mattress Firm Holding Corp., through its subsidiaries, operates as a specialty retailer of mattresses, and related products and accessories in the United States. It operates in two segments, Retail Operations and Franchise Operations. The company also operates an e-commerce Website. As of March 21, 2016, it operated and franchised approximately 3,500 stores across 48 states under the Mattress Firm, Sleepys, and Sleep Train brand names. The company was founded in 1986 and is headquartered in Houston, Texas. Yahoo Finance