Sleep Country Canada Holdings Inc. (SCCAF) Q2 2023 Earnings Call Transcript

Sleep Country Canada Holdings Inc. (OTCPK:SCCAF) Q2 2023 Earnings Call Transcript August 11, 2023 8:00 AM ET

Company Participants

Stewart Schaefer – President & CEO

Craig De Pratto – CFO

Conference Call Participants

Martin Landry – Stifel GMP

Stephen MacLeod – BMO Capital Markets

John Zamparo – CIBC Capital Markets

Brian Morrison – TD Securities


I would like to welcome everyone to Sleep Country’s Q2 2023 Results Conference Call. Yesterday, Sleep Country released its financial results for the second quarter of 2023. A copy of the earnings disclosure is available on their Investor Relations website includes cautionary language about forward-looking statements, risks and uncertainties, which also applies to the discussion during today’s conference call.

I would now like to turn the call over to Stewart Schaefer, President and CEO. Please go ahead, sir.

Stewart Schaefer

Thank you, and good morning, everyone. Thank you for joining us today. With me is Craig De Pratto, our CFO. I’m pleased to discuss one of the strongest second quarters in our company’s history, second in revenue only to the same period last year, which was up over 18%. These results were delivered against challenges in a less favorable macro environment than we expected. The impact of which was partially mitigated by the company’s proactive strategic initiatives around cost controls, direct sourcing and targeted advertising for more profitable segments of our business.

As Canadians adapt to an environment of higher interest rates and inflation, we continue to see a slowdown in consumer spending on large discretionary goods that began in the second half of 2022. We still feel that the consumer spending is cautious but healthy, albeit our mid- to lower end of the business is softer, down high single digits but holding up better than the industry, which has reported to be down 20% to 25% in units.

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