Select Comfort's EPS improves 41% in Q1 fiscal results
26 Apr '06
3 min read
Firmness mattresses marketer Select Comfort Corporation reported results for the fiscal first quarter ended April 1, 2006. Earnings per share increased 41 percent to $0.31 per diluted share, from $0.22 per diluted share in the first quarter of 2005, and net income increased 36 percent to $11.7 million.
Net sales in the first quarter totaled a record $212.7 million, up 23 percent compared to the first quarter a year ago.
Net income and earnings per share in the first quarter of 2005 did not include stock options expense. Excluding the effects of stock options expense in 2006, earnings per share would have been $0.34, representing an increase of 55 percent over the $0.22 per diluted share in 2005.
Net sales were a record $212.7 million, up 23 percent compared to $172.8 million in the first quarter of 2005.
The improvement reflected a combination of same-store growth of 18 percent and distribution expansion. Net sales benefited from higher average selling prices and unit growth.
During the quarter, the company added 6 net new company-owned stores to end the quarter at 402 stores, compared to 370 company-owned stores a year ago.
Operating margins improved to 8.6 percent of net sales, compared to 7.9 percent in the first quarter of 2005. Margin improvements were due in large part to gross margin expansion of 160 basis points, offset by expenses associated with new stock-based compensation accounting regulations.
Gross margins increased to 60.7 percent of net sales, compared to 59.1 percent in the first quarter last year. Margins improved as a result of a combination of a favorable mix shift within company-owned channels and higher average selling prices, which more than offset higher manufacturing and commodity costs. Company-owned gross margins improved to 62.3 percent from 61.1 percent in the first quarter last year.
marketing@alchempro.com
