Select Comfort third-quarter earnings decline 14.9%
Sales rise 2.6%, but same-store sales fall 6%
Larry Thomas -- Furniture Today, October 25, 2007
MINNEAPOLIS — Bedding manufacturer and retailer Select Comfort said its third-quarter sales rose 2.6% but net income was 14.9% below the same period last year.
The company, which specializes in airbeds and related products, said sales were aided by the opening of 46 company-owned stores in the past 12 months. Same-store sales, however, declined 6%.
“While we have not yet regained the revenue strength we are capable of, we have made progress,” said Bill McLaughlin, chairman and CEO. “Operationally, we continue to perform well, with profitability and strong cash flow allowing us to continue to invest in sales growth and cost savings improvements to enhance performance in 2008.”
Sales for the quarter ended Sept. 29 totaled $213.1 million, compared with $207.7 million in last year’s third quarter. Net income was $11.9 million, down from $13.9 million in the comparable period last year.
Earnings per share in the most recent quarter, however, were 26 cents or 1 cent above last year’s third quarter, because the company has approximately 9 million fewer shares outstanding than it did a year ago.
For the first nine months of 2007, sales totaled $608.6 million, essentially even with the first nine months of 2006. Nine-month net income fell more than 30% to $25.4 million or 52 cents per share.
The vertically integrated company, which operates 470 retail stores, also cut its sales and earnings estimates for the year. It now expects 2007 sales to be $820 to $830 million, down from earlier estimates of $840 million to $860 million.
Earnings are now projected to be 75 cents to 81 cents per share, down from earlier estimates of 87 cents to 93 cents per share.
In 2006, Select Comfort had sales of $801.2 million and earnings of 73 cents per share.
