• David Perry

Select Comfort net sales up 12% in Q1

MINNEAPOLIS — Select Comfort said net sales increased 12% in its first quarter, to $394 million. Same store sales increased 3%, and operating income was up 80% to $36 million, the company said.

“Consumers are responding enthusiastically to our brand and differentiated products,” said Shelly Ibach, president and CEO of Select Comfort. “Our investments over the past few years have made us a stronger competitor and this is evident in our first quarter results.”

Ibach was enthusiastic about the prospects for the company’s new Sleep Number 360 beds.

“In the second quarter, we will begin the phased introduction of the revolutionary Sleep Number 360 smart beds,” she said. “This innovation will set a new standard for what people should expect from their bed.”

In the first quarter, ended April 1, earnings per diluted share increased 107% to 56 cents, compared with 27 cents in the prior year’s quarter. The $36 million in operating income was 9.1% of net sales, with the gross margin rate increasing to 62.6% of net sales, the company said.

Cash provided byoperations was $87 million, up from $64 million in the prior year, and return on invested capital was 13.9% for the trailing 12-month period.

The company has increased its full-year 2017 earnings per diluted share outlook to $1.25 to $1.50, compared with the previous outlook of $1.20 to $1.40 per share. The outlook continues to include an estimated 15 cents to 22 cents EPS impact from incremental costs related to the launch of the Sleep Number 360 smart bed line and the redesign of the logistics network, the company said.

The outlook assumes high single-digit sales growth, including 4 to 5 percentage points from net new store openings and low single-digit comparable store growth. The company anticipates 2017 capital expenditures to be approximately $55 million, officials said.

David PerryDavid Perry | Executive Editor, Furniture Today

Hi, online readers. I'm David Perry, executive editor of Furniture/Today, and the writer on the mattress beat. Get my musings on mattresses on our web site and on my Twitter feed. And let me know what you would like me to write about in the wonderful world of mattresses.

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