Sleep Country Canada (ZZZ) is Canada’s leading omnichannel specialty retailer that sells products through brick-and-mortar and e-commerce channels.

The company operates under three banners: Sleep Country Canada (pmnichannel operations all over Canada), Dormez-vous (omnichannel operations in Quebec), and Endy (Canada’s leading online mattress-in-a-box retailer).

As of December 2020, Sleep Country had 281 stores and 17 distribution centes across Canada. The stores have Canada’s largest selection of mattresses (including bases and metal frames), and accessories such as pillows, pillowcases, sheets, and blankets.

In 2020, 79.3% of revenues were from mattresses, with the remaining 20.7% from accessories. Sleep Country has demonstrated the ability to undergo market share expansion pre-pandemic.

From 2015-18, mattress market share expanded consistently every year at a 12% compound annual growth rate (CAGR) from 22% to 31% in 2018.

Furthermore, Sleep Country has a market share of 5%-8% in the accessories market. I am bullish on the stock. (See Insiders’ Hot Stocks on TipRanks)

Attractive Industry Fundamentals

The mattress industry in Canada is a $1.8-billion market that is growing across the nation. In the industry, the demand is driven by replacement cycles of 8-10 years.

During economic downturns, these sales are typically delayed but not lost, creating pent up demand. Similarly, Sleep Country also operates in a large sleep accessories market, which is estimated to be worth $1.5 billion.

Growth of E-Commerce Platform

Sleep Country launched a new website in Q4 of 2019 to provide customers with a way to shop online which creates a full omnichannel experience.

This positioned the company well going into the pandemic, where it had to shift its entire business to e-commerce platforms for a period of time as stores were closed.

The strategy proved to be a very successful endeavor, as the company achieved its highest revenues in history with a high gross profit margin of 32.3% in 2020. In 2020, e-commerce sales represented 21.4% of total revenues.

Strong Brick-and-Mortar Track Record

The company has a strong track record with brick-and-mortar stores in Canada.

In the June 2019 management presentation, the company outlined that its new stores cost ~$400,000 of capital expenditures and working capital investment.

These stores are typically cash flow positive within 12 months of opening. From 2015-18, Sleep Country opened around 13 stores a year on average, with 12 stores in 2019, and six stores in 2020 due to the pandemic.

In 2021, the company has outlined that it continues to believe in the brick-and-mortar store format, and will open a minimum of six new stores in 2021.

In addition to opening new stores, the company has also outlined a plan to renovate existing stores to the “enhanced store design” which has higher same-store sales (SSS) growth, relative to its legacy stores.

As of December 2020, 78% of its stores had been renovated, and it plans to renovate another 20-30 stores in 2021.

Strong Retail Partnerships

Sleep Country has demonstrated the ability to develop strong exclusive retail partnerships with mattress manufacturers and other retailers to sell its products.

The company currently has a partnership with Simba, a leading mattress-in-a-box retailers in the U.K. to sell mattresses in Canada. In 2020, It entered into a partnership with Purple Innovation, a U.S. mattress and bedding company, and Malouf, another U.S. company that had bedding and furniture products.

In September of 2021, Sleep Country signed an exclusive retail and digital partnership with Casper, to make the brand more accessible to Canadians.

On the retail front, Sleep Country recently expanded its relationship with Walmart Canada (WMT) with the launch of 10 new locations in Walmart Canada’s licensee spaces.

Earlier this year, Sleep Country announced a partnership with Best Buy Marketplace (BBY), to exclusively supply traditional mattresses on the platform.

Management Change

On July 2021, Sleep Country appointed Stewart Schaefer as president and CEO of the company, after Dave Friesema announced his retirement in 2021. Mr. Schaefer has been a part of the executive leadership team since 2006.

Mr. Schaefer founded Dormez-vous in 1994, and joined forces with Sleep Country in 2006. He has extensive industry experience, both as a founder, and as a strategic operator of a company with an omnichannel focus.

This leadership transition should be a positive move for the company, as it continues to grow its omnichannel strategy.

What Analysts are Saying about ZZZ Stock

From Wall Street analysts, ZZZ earns a Moderate Buy consensus rating, based on three Buy ratings and two Hold ratings. Additionally, the average ZZZ price target of C$40 puts the upside potential at 9.2%.

Bottom Line

With a leadership position in the Canadian market, the continued success of the brick-and-mortar strategy post-renovation, and the re-opening of existing stores, the legacy business is well-positioned for success.

In addition, the transition to an omni-channel strategy will provide further growth opportunities for the company.

This in-turn helps Sleep Country continue to develop strong retail partnerships across Canada, to both maintain and grow its leadership position, as it has over the last few years.

Disclosure: The author works as a manager at National Bank Financial and had no position in any of the companies discussed in this article.

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Are you looking for lab-grown diamond jewelry? If yes, then you should check out our brand new line of lab-grown diamonds. Lab-grown diamonds are 100% real and come in various shapes and sizes. They are also affordable and perfect for everyday wear. Diamonds are the hardest substance known to man. They are also extremely rare, expensive, and beautiful. These gemstones have been growing in popularity as more people become aware of their benefits. In addition to being an investment, they are also used by surgeons during surgery. They are also used in dentistry because they do not cause any allergic reactions.

Why buy lab-grown diamonds from manufacturers?

The main reason for buying diamonds from a manufacturer is they can provide you with a wide range of variety plus the most affordable rates. But when it comes to quality, there really isn’t much difference between them and mined diamonds. The only major difference is that they are synthetic. Synthetic diamonds are made using carbon under high pressure and heat. This process creates a crystal structure similar to natural diamonds. Most of these diamonds are lab grown or synthetically created.

How does a lab grown diamond differ from a mined one?

A lab grown diamond differs from a mined one in several ways:

1) A lab grown diamond has no kimberlites, which are the naturally occurring crystals found within the earth’s crust. Kimberlite is what gives mined diamonds their color.

2) A lab grown diamond doesn’t contain iron impurities. Iron impurities give mined diamonds their yellowish tint.

3) A lab grown diamond contains fewer defects than a mined one. Defects include cracks, inclusions, and other imperfections.

4) A lab grown diamond is larger than its mined counterpart. It usually measures between 1/8th to 2 carats.

5) The price of a lab grown diamond is typically lower than a mined one.

How does a laboratory grow a diamond?

A diamond is formed deep within the earth’s crust. It takes millions of years to form and is the result of extreme pressures and temperatures. While lab grown diamond production is still relatively new, scientists have been able to replicate this process. A diamond begins as a single atom. Scientists use lasers to vaporize graphite atoms into gas. Then they bombard the gas with high-energy electrons. This causes the graphite atoms to bond together forming a diamond. Once the diamond is formed, it must be separated from the surrounding materials. This is done through chemical processes. There are two processes of lab grown diamonds; chemical vapor deposition and high-pressure high temperature.

Chemical Vapor Deposition (CVD)

In this method, a small amount of graphite is placed on top of a metal substrate. Next, the graphite is heated until it becomes plasma. The plasma is then deposited onto the surface creating a diamond film. This process is repeated multiple times to create a large number of diamonds.

High-Pressure High Temperature (HPHT)

HPHT diamond uses a combination of high pressure and high temperature. Diamond seed particles are added to a mixture of metals. The mixture is then compressed and heated to very high temperatures. As the mixture cools, the pressure forces the metals into contact with each other. This forms a solid mass of a diamond. The resulting diamond is extremely pure because it was not exposed to air during the growth process.

What are some uses for lab grown diamonds?

There are many different reasons why you would want to buy a lab grown diamond. Some people prefer to wear lab grown diamonds because they feel more secure knowing that they were not cut by humans. They also believe that lab grown diamonds are of better quality because they don’t contain any iron impurities. Some people choose to wear lab grown diamonds simply because they like the way they look. Others may purchase them to make jewelry or decorate an engagement ring.

Lab-grown diamonds can also be used as a replacement for natural diamonds. Natural diamonds come in all shapes and sizes. However, they are often too small to meet demand. In order to fill this need, scientists have created lab grown diamonds. These diamonds are much larger than their natural counterparts. They also tend to be more expensive.

Here are some of the reasons why you should buy lab grown diamonds;

1) A lab grown diamond has fewer defects than a mined diamond.

2) A lab grown diamond will last longer than a natural diamond.

3) A lab grown diamond is less likely to break under stress.

4) A lab grown diamond tends to be more affordable than natural ones.

Lab-grown diamond jewelry 

If you’re looking for something unique to wear, you might consider buying lab grown diamonds. Lab-grown diamonds are available in a variety of colors such as yellow, white, pink, blue, green, orange, red, black, brown, gray, and purple. Lab-grown diamond rings

You can also buy lab grown diamond rings. These rings are made using a special type of metal called platinum and gold. Platinum is one of the most popular metals used to make an engagement ring. But gold is more strong and more durable. When combined with a lab grown diamond, these rings become even stronger.

How do I know if my lab grown diamond is real?

The best way to tell if your lab-grown diamond is authentic is to ask for GIA or IGI certification. Both organizations certify diamonds based on their size and color. If your lab grown diamond meets the criteria set by either organization, then it’s probably real.

However, there are plenty of fake diamonds out there. Fake diamonds are usually sold at low prices like simulated and moissanite. You can check the authenticity of your diamond by asking for its certificate from a reputable jeweler.

FAQs;

Are lab diamonds real?

Yes, they are indeed real!

I’ve been working in the diamond industry since 1994 and have seen many types of synthetic diamonds over the years.

They are just as good as natural diamonds and sometimes better – they are cheaper, easier to work with, and are generally more consistent in color (in terms of hue). They are also more resistant to scratching and other damage than natural diamonds. In fact, I wouldn’t call them “synthetic” anymore. They are actually “lab-grown.”

Nuclear weapon design

The creation of weapons of mass destruction continues to spread worldwide fear of their dangerous effects and massive environmental catastrophe. The use of nuclear energy has become an essential element for a developing nation, but behind its main contribution to the world is man’s desire to spread military prowess over other nations. Nuclear weapons were created not only for military defense, but also to release nuclear radiation and eliminate all matter without consideration at the launch site.

Two of the most fearsome and destructive elements of warfare, the atomic bomb and the hydrogen bomb, will be discussed. Do atomic and hydrogen bombs have any difference? Why is the hydrogen bomb stronger than the atomic bomb? Both atomic and hydrogen differ in several comparative ways. The hydrogen bomb is considered more powerful than an atomic bomb due to their respective principles and relative strengths. Both bombs use radioactive elements uranium and plutonium to create nuclear power, but they differ in how the elements are used. The hydrogen bomb is also known as “thermonuclear” bombs and generates energy from a fission bomb to compress and heat the fusion fuel.

An atomic bomb works by atomic fission or the splitting of the atomic nucleus, while the hydrogen bomb works by atomic fusion or by combining atomic nuclei. In principle, fission causes radioactive elements to split from large atoms to smaller ones, while fusion combines small atoms to create larger ones, causing the hydrogen bomb to release more energy than the atomic bomb. The energy released by the atomic bomb is millions of times greater than that released in chemical reactions, while the hydrogen bomb can release three to four times more than the atomic bomb. Atomic bombs are also believed to have a ton of TNT up to 500,000 tons of TNT, so we can roughly assess how dangerous a hydrogen bomb can be.

Atomic bombs are activated by an explosion from a TNT detonating device. This causes the radioactive elements (uranium-235 and plutonium-239) to collide with each other in a large amount of energy. This sets off a chain reaction with more atoms breaking apart and energy being released. The hydrogen bomb, on the other hand, is set off by the actual presence of the atomic bomb. Radioactive elements are tightly bound in a similar way to nuclear fission which causes a nuclear fusion. By product, the atomic bomb produces highly radioactive particles after the energy has been released, while the hydrogen bomb’s radioactive particles are activated after the explosion.

Surely we can imagine the magnitude of the destruction of both the atomic bomb and the hydrogen bomb simply by remembering the bombings of Hiroshima and Nagasaki in 1945. To date, there are no records of nuclear fusion bombs being used for war, although programs Government defense have put considerable research into such production possibilities.

To summarize the difference between the atomic bomb and the hydrogen bomb, the following is detailed below: 1. The hydrogen bomb is considered an “improved” version of the atomic bomb 2. The atomic bomb works by nuclear fission, while the hydrogen bomb works by nuclear fusion. 3. By concept, the hydrogen bomb consists of several atomic bombs. 4. Hydrogen bomb can be detonated with atomic bomb.

Hiroshima atomic bomb versus Nagasaki atomic bomb. The allied powers that are part of the United States and the United Kingdom prepared two powerful atomic bombs during the Second World War. The bombs were intended to blow up the two prominent Japanese cities of Hiroshima and Nagasaki. By order of US President Harry S. Truman, these two

hydrogen peroxide and alcohol

Hydrogen Peroxide vs. Rubbing Alcohol Hydrogen peroxide and rubbing alcohol are disinfectants and are commonly used for household cleaning purposes. Hydrogen peroxide is a compound formed by the combination of oxygen and hydrogen, while alcohol is a very poisonous form of ethyl alcohol or simply alcohol.

Hydrogen bonds and covalent bonds

The topic makes it very clear that the article is based on some concepts of chemistry. For those of you who know the basics of chemical bonding, it is easy to understand that the discussion is about two types of bonds. As for others, let’s just say that among the many chemical bonds that occur between atoms