Select Comfort Corporation raises 43% per share in Q2
27 Jul '05
5 min read
In the second quarter, Select Comfort opened eight new stores and closed nine, completing the phase-out of leased departments in Bed, Bath & Beyond stores thus ending the quarter with a total of 369 retail stores.
In the third quarter, the company expects to open at least 15 new stores, with no anticipated store closings. At the end of the second quarter, the Sleep Number bed was sold in 121 retail partner locations, an increase of 15 doors during the quarter.
The company's advantaged business model led to improved operating margins in the second quarter and resulted in the generation of internal funding for capital expenditures and other growth programs, as well as stock repurchases. Cash flow generated from operations for the six-month period ending July 2, 2005, totaled $19.4 million, while capital expenditures were $11.6 million and stock repurchases totaled $12.4 million.
Stock repurchases in the second quarter totaled $5.5 million. The company expects to continue to self fund its growth in both the near- and long-term. Select Comfort's balance sheet remains debt free with cash and investments at the end of the second quarter of $93 million.
For the six-month period ending July 2, 2005, the company reported net income of $16.5 million, or $0.42 per diluted share, compared to net income of $13.1 million, or $0.33 per diluted share, during the six-month period ending July 3, 2004. Also during this six-month period, net sales increased 24 percent to $327.4 million, compared to net sales of $264.7 million during the same period in 2004.
marketing@alchempro.com
