Select Comfort reports profit as sales rise in 4Q
By Larry Thomas -- Furniture Today, March 1, 2010
MINNEAPOLIS —
Airbed manufacturer and retailer Select Comfort recorded a profit of $35.3 million in the fourth quarter, reversing a net loss incurred in the same quarter in 2008.
The company, which sells most of its products through company-owned stores, said sales rose 4.1% in the quarter, while same-store sales jumped 23%. It was the second consecutive quarter of positive same-store sales numbers.
“Our fourth quarter and full-year performance reflects strong execution against a set of initiatives that focused on controlling costs, building our brand for improved sales and preserving cash,” said Bill McLaughlin, president and CEO.
“The strategic focus and our improved business performance positions us well for continued same-store sales growth and improved profitability throughout 2010.”
Sales for the quarter ended Jan. 2 totaled $136.5 million, compared with $131.1 million for the quarter ended Jan. 3, 2009.
The quarterly profit, which equals 69 cents per share, compares with a net loss of $57.4 million or $1.30 per share in the previous year's fourth quarter. The previous period included asset impairment charges of $32.1 million.
Select Comfort ended its fiscal year with 403 stores, down from 471 at the end of the previous year. The company said it will continue to close unprofitable stores during 2010 and expects to end the year with 380 to 390 locations.
Sales for the year ended Jan. 2 totaled $544.2 million, down 10.6% from $608.5 million in the year ended Jan. 3, 2009.
The company had full-year net income of $35.6 million or 77 cents per share. That compares with a net loss of $70.2 million or $1.59 per share the previous year.
Select Comfort
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 1/2 | 2010 | 2009 | Change |
| (a) Includes asset impairment charges of $198,000 in the 2010 quarter, $32.1 million in the 2009 quarter, $686,000 in the 2010 year and $34.6 million in the 2009 year. Also includes income tax benefit of $28.9 million in the 2010 quarter, $20.9 million in the 2010 year, and $2.6 million in the 2009 year, and income tax expense of $5.9 million in the 2009 quarter. Also includes terminated equity financing costs of $3.3 million in the 2010 year. |
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| Sales | $136,471,000 | $131,073,000 | 4.1% |
| Operating income | 8,250,000 | (16,862,000) | — |
| Net income (a) | 35,309,000 | (57,436,000) | — |
| Earnings per share | 0.69 | (1.30) | — |
| Year ended | 1/2 2010 | 2009 | Change |
| Sales | $544,202,000 | $608,524,000 | (10.6%) |
| Operating income | 26,656,000 | (31,490,000) | — |
| Net income (a) | 35,552,000 | (70,177,000) | — |
| Earnings per share | 0.77 | (1.59) | — |
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