Select Comfort makes $1.1M in 4Q
By Furniture Today Staff -- Furniture Today, February 10, 2002
Minneapolis — Select Comfort, the nation's largest maker and retailer of airbeds, recorded a fourth-quarter profit of $1.1 million as sales jumped 8.2%. It was the second straight profitable quarter after eight consecutive money-losing quarters.
"We are very excited to be back in control of our future," said Bill McLaughlin, president and chief executive officer. "We have achieved a great deal in the past year under very trying conditions."
Sales totaled $69.3 million for the quarter. For all of 2001, sales slid 3.1% to $261.7 million. McLaughlin said 78% of sales came from 328 company-owned stores and leased departments, 15% came from direct marketing, 3% from e-commerce and 4% from sales on the QVC television shopping channel and traditional furniture stores.
Despite the black ink during the second half, Select Comfort posted a net loss of $12.1 million for the full year. However, McLaughlin said he expects to finish in the black for 2002, noting the company is positioned to reap the full benefit of numerous cost-reduction and quality-control efforts implemented in 2001.
"Our results demonstrate that we did not sacrifice our ability to grow," he said during a conference call with securities analysts. "We lowered our break-even point … and were able to make money at today's sales levels."
He was especially encouraged by the results of an intensive advertising effort in eight markets. Same-store sales jumped as much as 27% in markets that got the heavier advertising, and he said that program will be used in additional markets this year.
McLaughlin said "a handful" of new stores are planned for the second half of this year, but probably will be offset by the closing of a few underperforming units.
| Select Comfort | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/29 | 2001 | 2000 | Change |
| (a) Includes a $115,000 income tax benefit. (b) Includes $642,000 equity in loss of affiliate. |
|||
| Sales | $69,341,000 | $64,075,000 | 8.2% |
| Operating income | 2,977,000 | (6,377,000) | — |
| Net income | (a)1,065,000 | (25,059,000) | — |
| Earnings per share | 0.04 | (1.39) | — |
| Year ended 12/29 | 2001 | 2000 | Change |
| Sales | $261,687,000 | $270,077,000 | (3.1%) |
| Operating income | (8,776,000) | (24,018,000) | — |
| Net income | (12,066,000) | (b)(37,214,000) | — |
| Earnings per share | (0.66) | (2.09) | — |
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