Select Comfort profits jump 52% in third quarter
Larry Thomas -- Furniture Today, October 18, 2012
MINNEAPOLIS — Powered by a 21% same-store sales increase at its company-owned stores, specialty bedding manufacturer and retailer Select Comfort reported record earnings per share in the third quarter.
The company said profits totaled $26.2 million or 46 cents per share in the quarter ended Sept. 29. That's up 52% from $17.2 million or 31 cents per share in the same quarter last year.
Sales totaled $246.8 million, up 23.7% from $199.6 million in last year's third quarter.
"Customers continue to enthusiastically respond to the Sleep Number brand experience, including our proprietary products and exclusive store experience," said Shelly Ibach, president and CEO. "And the strength of our business model resulted in record operating margin as well as record earnings."
Select Comfort ended the quarter with 394 company-owned stores, and expects to have 408 to 412 locations by the end of the year.
The company said its stores average $2.11 million in sales annually and have average sales per square foot of $1,314.
Results were similar for the nine months ended Sept. 29. Sales rose 28.9% to $714.4 million, while net income rose 45.2% to $65.6 million or $1.15 per share.
Select Comfort said it is boosting its earnings projections for the year to a range of $1.45 to $1.47 per share. That's up from a July forecast of $1.35 to $1.41 per share. The company said the new projection assumes a fourth-quarter sales increase of at least 20%.
"In the fourth quarter, we'll accelerate investments in our consumer-focused growth strategies to build brand awareness and advance product innovation while developing markets with more convenient locations and enhanced store experiences," said Ibach.
She said the company remains committed to its goals of 20% annual growth in earnings-per-share and $1.5 billion in annual sales by 2015.