Mattress retailer Sleep Country Canada (ZZZ) reported a 21% decline in its fiscal third quarter net income as consumer spending across the country weakened.
Specifically, the Toronto-based company said that its net income in the period totalled $28.9 million, down 21% from $36.5 million during the same quarter a year earlier.
The company blamed the poor results on a slump in consumer spending that has been caused by higher interest rates and worries of a potential recession in Canada this year.
Sleep Country said it earned $0.79 per share in fiscal Q3, down from $0.98 a year ago.
Revenues declined 8.3% to $251 million from $273.8 million a year earlier, while same-store sales fell more than 10%.
The company opened one new store during the quarter, bringing its total across the country to 287.
Sleep Country Canada’s stock has fallen 7% over the past 12 months to trade at $25.14 per share.
