Select Comfort 1Q sales up 23.5%
Janice Chamberlain -- Furniture Today, May 2, 2005
Minneapolis — Airbed manufacturer-retailer Select Comfort reported a 23.5% first-quarter sales gain, paired with a net income jump of 17.9%.
In the quarter ended April 2, Select Comfort sales were $172.8 million, compared with $140 million in the first quarter of 2004. Profits were $8.6 million, up from $7.3 million in the year-earlier period. Same-store sales increased 16%.
Chairman and CEO Bill McLaughlin said, "Strong unit growth across all channels was a primary contributor to our sales increases, particularly in our retail stores and other consumer-oriented channels such as e-commerce and retail partners."
The company's gross margin slipped from 61.5% in the year-ago quarter to 59.1% in the latest quarter. Also dipping was Select Comfort's operating margin, which was 7.9% in the most recent quarter, compared with 8.3% in the comparable 2004 period.
Net income as a percentage of sales was 5% in the latest quarter, measured against 5.2% in the year-earlier period.
Select Comfort said expansion plans for 2005 are on track, and it expects to open up to 40 stores this year and close 15. In the first quarter, it opened five stores and closed five, ending the quarter with 370 stores.
In the second quarter, Select Comfort plans to open at least 10 stores and close 10.
The bedding specialist is raising its earnings per share guidance for full-year 2005 to a range of 98 cents to $1.06, assuming the continued performance of its advertising program and no significant changes in the U.S. economy.
"We are optimistic about our prospects for the balance of 2005, but remain cautious ... due to ongoing challenges (such as) increased pricing pressures and the effect that rising fuel costs could have on our business," said McLaughlin.
| Select Comfort | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 4/2 | 2005 | 2004 | Change |
| (a) Based on average shares outstanding of 39.1 million in the 2005 quarter and 40 million in the 2004 quarter. | |||
| Sales | $172,832,000 | $139,963,000 | 23.5% |
| Operating income | 13,648,000 | 11,618,000 | 17.5% |
| Net income | 8,642,000 | 7,333,000 | 17.9% |
| Earnings per share (a) | 0.22 | 0.18 | 22.2% |
Select Comfort's net sales drop 21% in 2Q
07/26/2009Select Comfort sales up 23.1%
04/26/2006Select Comfort 4Q sales up 8.4%
02/13/2005
