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Select Comfort more than doubles profit as sales soar 27%

Sleep Number bed producer eyeing more growth this year

Larry Thomas -- Furniture Today, February 9, 2012

MINNEAPOLIS — Powered by a 31% same-store sales increase at its company-owned retail stores, specialty bedding manufacturer Select Comfort said fourth-quarter profits were more than double the comparable period from the previous year.

The company, which markets the Sleep Number air bed, said total sales for the quarter were $189.1 million, an increase of 27.2% from the previous year's fourth quarter.

Profits totaled $15.4 million or 27 cents per share. That compares with $7.12 million or 13 cents per share in the same period a year earlier.

The growth pattern was much the same for the full year. Sales were up 22.7% to $743.2 million in 2011, while profits nearly doubled to $60.5 million or $1.07 per share.

Same-store sales surged 26% for the year.

"Our outstanding financial results in 2011 mark a year of significant progress for our company as we refined our top-line growth formula and achieved record bottom-line leverage and profitability," said Bill McLaughlin, president and CEO. "We continued to attain top-tier comparable sales increases through out integrated and customer-focused approach to marketing, distribution and product innovation."

Select Comfort ended 2011 with 381 stores, and McLaughlin said the store count would be 400 to 410 by the end of this year.

The company derives about 90% of its revenues from its retail stores.

For 2012, the company is forecasting earnings of $1.32 to $1.40 per share. It didn't project sales for the year, but said same-store sales should grow at least 15%.

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