Select Comfort warns of 4Q earnings miss
Furniture Today Staff -- Furniture Today, January 21, 2014
Minneapolis - Bedding manufacturer and retailer Select Comfort said fourth quarter earnings will be below its estimates because of slower than-expected sales after the Thanksgiving holiday.
The company, which makes the Sleep Number bed, said earnings will be below an October estimate of 18 cents to 26 cents per share, and noted that same store sales from company-owned stores will be flat.
Through November, the company said its performance was consistent with the earnings guidance, but sales fell below internal goals from Cyber Monday through the end of December.
"The sales slowdown following the Thanksgiving holiday reflected a tepid retail holiday shopping season," said Shelly Ibach, president and CEO. "We expect this challenging environment to continue in 2014 and are planning accordingly."
The company said net sales in the fourth quarter were up about 5% to $231 million. The midpoint of the earnings guidance assumed low double-digit sales growth and same-store sales growth in the mid-single-digits.
Select Comfort will release complete fourth-quarter financial results on Feb. 5.
Bedding Conference Set for 14-16 May