TORONTO, May 7, 2024 /CNW/ - Sleep Country Canada Holdings Inc. ("Sleep Country" or the "Company") (TSX:ZZZ) released its financial results today for its first quarter ended March 31, 2024.   All financial results are reported in Canadian dollars unless otherwise stated.  First Quarter Financial Highlights Revenues increased by $3.2 million or 1.6% to $209.7 million in Q1 2024 from $206.5 million in Q1 2023; Same Store Sales ("SSS")1 decreased by 1.6% in Q1 2024 from Q1 2023; Revenues attributed to eCommerce increased to 24.5% in Q1 2024 from 22.3% in Q1 2023; Gross profit increased by $2.1 million to $72.9 million in Q1 2024 from $70.8 million in Q1 2023; Gross profit margin increased to 34.8% in Q1 2024 from 34.3% in Q1 2023; Operating EBITDA1 decreased by $3.0 million to $38.4 million in Q1 2024 from $41.4 million in Q1 2023; Operating EBITDA1 margin decreased to 18.3% in Q1 2024 from 20.0% in Q1 2023; Net income attributable to the Company decreased by $2.6 million to $8.7 million in Q1 2024 from $11.3 million in Q1 2023; Adjusted net income attributable to the Company1 decreased by $3.6 million to $9.6 million in Q1 2024 from $13.2 million in Q1 2023; Diluted earnings per share ("EPS") decreased by $0.06 or to $0.26 in Q1 2024 from $0.32 in Q1 2023; Diluted adjusted EPS1 decreased by $0.09 to $0.28 in Q1 2024 from $0.37 in Q1 2023; Subsequent to quarter-end, on May 7, 2024, the Board declared a dividend of $0.237 per share payable on May 30, 2024 to shareholders of record at the close of business on May 23, 2024. The dividend was designated as an "eligible dividend" for Canadian tax purposes; and Subsequent to quarter-end, the Company completed its acquisition of the remaining 32% of the outstanding common shares of Hush Blankets Inc. First Quarter Business Highlights Launched a partnership with veritree to help mitigate climate change by planting a tree for every delivery completed through the Company's green glove delivery program; Generated over 100 million impressions on the "Hour Back Pledge" to acknowledge the potential setback to Canadians' health and well-being resulting from the loss of one hour of sleep from Daylight Saving Time; and Donated $100,000 to the Canadian Mental Health Association ("CMHA") advocating for the adoption of healthy sleeping habits by all Canadians. President & CEO Commentary "This quarter's shopping patterns remained volatile as consumers continue to navigate these uncertain times.  Despite this pressure, we saw Revenues increase by 1.6% and delivered an improvement in our gross margin by 50 basis points year over year as we continue to source our merchandise more efficiently," said Stewart Schaefer, President and CEO of Sleep Country. "As Sleep Country enters its 30th year, we are more bullish than ever before about the future of our sleep ecosystem which has been transformed over the last few years.  With our evolved business model, we are better positioned today than at any other point in our history to drive strong performance for years to come," said Schaefer. "As we invest in all our brands and teams, our focus is continuing to drive innovative ways to grow our share of business, by servicing and exceeding our customers' expectations through our multi-channel approach. Fiscal 2024 will see the evolution of our acquired digital brands as we roll out more of our brick-and-mortar locations while also introducing new innovative merchandise into a tactile environment," said Schaefer. "We are invigorated like we were in our early days, 30 years ago, to serve a broader customer segmentation with multiple ways to shop enabling Canadians to get their best nights' sleep.  No matter what our customers' sleep needs are, our channel agnostic approach with our broad portfolio of the world's most popular brands like Tempur-Pedic, Sealy, Casper, Endy, Kingsdown and so many more, will serve up and delight more Canadians than ever before," concluded Schaefer. Summary of First Quarter Financial Results (C$ thousands unless otherwise stated; other than store and share data) Q1 2024 Q1 2023 Change Revenues $ 209,715 $ 206,495 1.6 % SSS(1) (1.6 %) (6.2 %) Gross profit margin (%) 34.8 % 34.3 % Stores opened 4 2 Stores closed - 1 Operating EBITDA(1) $ 38,388 $ 41,360