Select Comfort posts 2Q loss as sales decline 15%
By Furniture Today Staff -- Furniture Today, August 18, 2008
MINNEAPOLIS — Select Comfort, the nation's largest air bed retailer and manufacturer, recorded a net loss of $6.6 million in the second quarter due largely to weak sales at its network of company-owned stores.
The company, which had a profit of $2.9 million in last year's second quarter, said total retail sales were down 15% and same-store sales plunged 20%.
Bill McLaughlin, CEO, said the second quarter typically is the company's weakest, and he noted that the company's operating loss in the period was not as large as the first quarter's operating loss.
“We made important progress in the second quarter in reducing costs, stabilizing sales and laying the groundwork for a return to profitability in the second half of the year, even with growing inflationary pressures and weak macro-economic conditions,” McLaughlin said.
Sales for the quarter ended June 30 were $152.1 million, compared with $179 million in last year's second quarter.
The most recent quarter's loss is equal to 15 cents per share. In last year's second quarter, Select Comfort had earnings of 6 cents per share.
For the first half of the year, sales were down 19% to $320.2 million. The first half net loss totaled $13.7 million or 31 cents per share.
In the first half of last year, the company had a profit of $13.6 million or 27 cents per share.
| Select Comfort | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/28 | 2008 | 2007 | Change |
| (a) Includes pretax asset impairment charges of $724,000 in the 2008 quarter and $1.1 million in the 2008 six months. (b) Based on average shares outstanding of 44.1 million in the 2008 quarter and six months, 49.9 million in the 2007 quarter and 50.8 million in the 2007 six months. |
|||
| Sales | $152,055,000 | $178,991,000 | (15.0%) |
| Operating income | (8,884,000) | 6,160,000 | — |
| Net income (a) | (6,591,000) | 2,912,000 | — |
| Earnings per share (b) | (0.15) | 0.06 | — |
| 6 months ended 6/28 | 2008 | 2007 | Change |
| Sales | $320,220,000 | $395,500,000 | (19.0%) |
| Operating income | (18,719,000) | 24,571,000 | — |
| Net income (a) | (13,724,000) | 13,589,000 | — |
| Earnings per share (b) | (0.31) | 0.27 | — |
