Minneapolis-based bed retailer Select Comfort sales up
25 Oct '07
4 min read
Select Comfort Corporation announced results for the fiscal third quarter ended Sept. 29, 2007. Net sales totaled $213.1 million, an increase of 3 percent, compared to $207.7 million in the third quarter of 2006. Net income totaled $11.9 million, or $0.26 per diluted share, compared to $13.9 million, or $0.25 per diluted share, in the third quarter of 2006.
"While we have not yet regained the revenue strength we are capable of, we have made progress and did deliver year-over-year Earnings Per Share (EPS) growth," said Bill McLaughlin, chairman and chief executive officer for Select Comfort. "Operationally, we continue to perform well, with profitability and strong cash flow allowing us to continue to invest in sales growth and cost savings improvements to enhance performance in 2008."
Sales benefited from 46 new company-owned stores opened during the past 12 months, including 11 net new stores in the third quarter. Broader distribution contributed to a 3 percent increase in third quarter retail sales with same-store sales down 6 percent, an improvement over the past several quarters. In addition, the company's e-commerce business grew 30 percent compared to the same quarter last year.
The gross profit margin of 61.6 percent of net sales was down 40 basis points from 62.0 percent in the third quarter of last year and up 40 basis points compared to 61.2 percent in the second quarter this year.
This quarter's gross profit percentage reflects the full burden of costs for compliance with mandatory national fire retardant (FR) requirements, which took effect July 1, 2007. Sequentially, and on a year-to-date basis, the company has improved the gross profit percentage through ongoing cost and quality initiatives, despite higher FR-related manufacturing costs.
marketing@alchempro.com
