Baron Funds Comments on Mattress Firm Holding Corp
- By Holly LaFon
Mattress Firm Holding Corp. (MFRM), the dominant domestic retailer of mattresses, fell in the quarter after the company lowered its earnings guidance based on a weak retail environment and on one-off issues that we believe have subsequently been addressed. The company has moved up its plan to rebrand all its stores as Mattress Firm and rollout its national initiatives involving new merchandising, distribution, and advertising plans. We believe the company will succeed in its efforts, which should increase margins and generate significant free cash flow that will de-lever its balance sheet, all while continuing to build stores and generate positive same-store sales.
Warning! GuruFocus has detected 4 Warning Signs with MFRM. Click here to check it out.
The intrinsic value of MFRM
From Baron Funds' Small Cap Fund second quarter 2016 shareholder letter.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 4 Warning Signs with MFRM. Click here to check it out.
The intrinsic value of MFRM
