Select Comfort slashes sales, earnings forecast
By Furniture Today Staff -- Furniture Today, December 16, 2007
Minneapolis — Specialty bedding producer and retailer Select Comfort said last week its 2007 sales and earnings would fall short of earlier projections because of continued weakness in retail sales.
The company, which sells the Sleep Number airbed, said it wasn't providing revised figures because of the "volatile consumer environment and the uncertain timing of impacts related to our initiatives."
In October, the company forecast 2007 sales of $820 million to $830 million and earnings of 75 cents to 81 cents per share.
In 2006, sales totaled $806 million and earnings were 85 cents per share.
Jim Raabe, chief financial officer, said sales trends continued to improve through the day after Thanksgiving, but have softened since then.
"Fourth-quarter sales have proven to be more difficult than we anticipated," he said. "Our consumer has responded to promotional shopping periods, such as Veterans Day and Black Friday, but traffic and sales levels have not been sustained beyond the promotional periods."
He said the company is making unspecified cost reductions and will be increasing prices on certain models in January.
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Select Comfort says earnings will fall short
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