Share this on

Select Comfort sales up 8.9%

Larry Thomas -- Furniture Today, February 21, 2011

MINNEAPOLIS — Driven by a 12% increase in same-store sales at its company-owned retail locations, bedding manufacturer Select Comfort said fourth quarter sales were 8.9% ahead of the same quarter in 2009.

The company said net income tumbled to $7.1 million or 13 cents per share, from $35.3 million or 69 cents per share in the comparable period in 2009. The fourth quarter of 2009, however, included a one-time income tax benefit of $28.9 million. Without that gain, net income would have been 8 cents per share.

The profit beat analysts' average estimates of 11 cents per share, according to Fact- Set, and sent the stock up more than 10% after the announcement.

Fourth-quarter sales totaled $148.7 million, up from $136.5 million the same quarter in 2009.

For the full year, sales totaled $605.7 million, up 11.3% from $544.2 million in 2009.

Net income for 2010 was $31.6 million or 57 cents per share. That's a drop of 11.2% from $35.6 million, or 77 cents per share in 2009. The 2009 figure included a one-time income tax benefit of $20.9 million.

"Our fourth quarter and full-year performance demonstrate consistent execution against a focused set of priorities as well as solid progress against our profit and sales-growth goals," said Bill McLaughlin, president and CEO. "We are particularly pleased we have continued to increase profit margins and grow faster than the industry as we lapped tougher year-over- year comparisons."

Select Comfort, which makes the Sleep Number airbed, ended the year with 386 stores, down from 403 at the end of 2009. The company said it will have about 380 stores at the end of 2011.

In 2010, the company said, 70% of its stores had sales topping $1 million and the average sales per store was $1.3 million. In 2009, 48% of its stores topped the $1 million mark and the average sales per store was $1.05 million.

The company didn't make a sales projection for 2011, but said net income should be 68 cents to 74 cents per share.

Select Comfort Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
Quarter ended 1/1	2011	2010	Change
Sales	$148,668,000	$136,471,000	8.9%
Operating income	11,946,000	8,250,000	44.8%
Net income (a)	7,118,000	35,309,000	(79.8%)
Earnings per share	0.13	0.69	(81.2%)
Year ended 1/1	2011	2010	Change
Sales	$605,676,000	$544,202,000	11.3%
Operating income	54,790,000	26,656,000	105.5%
Net income (b)	31,568,000	35,552,000	(11.2%)
Earnings per share	0.57	0.77	(26.0%)
(a) Includes income tax benefit of $28.9 million in 2010. (b) Includes income tax benefit of $20.9 million and terminated equity financing costs of $3.3 million in 2010.

Share this on

Select Comfort sales surge 8.9% in fourth quarter

Feb 10, 2011

Also by this author

Also by Larry Thomas

Featured Company

FurnitureCore.com

FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more