Mattress Firm Holding Corp. (MFRM, Financial), the largest operator of mattress stores in the states, reported soft sales and its shares fell 21.1% in the quarter. We think sales are soft because of the general slowdown in consumer spending and because of a lack of advertising by the major mattress brands, as they digest a major acquisition. We are still attracted to the company's dominant market position, its opportunity to open new stores and continue to consolidate its industry, and the shift towards higher priced specialty product. We think sales will soon recover and earnings will resume their fast pace of growth.
From Ron Baron’s Baron Funds third quarter 2013 report.
From Ron Baron’s Baron Funds third quarter 2013 report.
