Select Comfort profits jump 64.3% as sales soar 24.7%

Larry Thomas -- Furniture Today, October 20, 2011

MINNEAPOLIS — Specialty bedding producer and retailer Select Comfort said third-quarter profits leaped 64.3% as the company reported record earnings per share.

Sales were 24.7% ahead of last year's third quarter, an increase that was driven by a 26% jump in same-store sales at the company's 374 retail stores.

"Our outstanding performance in the third quarter further demonstrates the strength of our unique product, our advantaged business model, and the success of our strategic initiatives are having in driving profitable growth and increased share," said Bill McLaughlin, president and CEO. "We're especially pleased with the quality and sustainability of our earnings, driven by continued double-digit revenue growth and record operating margins."

Net income for the three months ended Oct. 1 totaled $17.2 million or 31 cents per share. In the same quarter last year, the figures were $10.5 million or 19 cents per share.

Sales were $199.6 million, up from $160.1 million in last year's third quarter.

The company said 89.3% of its sales came from its retail stores. The remainder was divided among direct-to-consumer, e-commerce and wholesale sales.

The average sales per store for the trailing 12 months reached a record $1.61 million, the company reported.

For the nine months ended Oct. 1, sales jumped 21.3% to $554.1 million.

Nine-month net income totaled $45.1 million or 80 cents per share. That's an 84.5% increase from the first nine months of 2010, when net income was $24.5 million or 44 cents per share.

As a result of its robust third quarter, Select Comfort said it is boosting its earnings projection for the year to 99 cents to $1.01 per share. That's up from a July projection of 90 cents to 96 cents per share.