Select Comfort Sales Climb 13%, Nets $7.8 Million in 1Q

April 21, 2010  by in UnCategorized   

By Home Furnishings Business in Bedding on April 22, 2010 Select Comfort Corp. (NASDAQ: SCSS) reported a net income of of $7.8 million for the first quarter ended April 3, compared to a net loss of $2.7 million during the same quarter last year.

Net sales for the specialty bedding retailer totaled $158 million for the quarter, a 13 percent increase compared to $139.6 million during the same period last year.

"During the quarter, our solid execution resulted in improved performance, demonstrated by sustained same-store growth and strong operating margins," said Bill McLaughlin, president and CEO. "We took advantage of an improving consumer environment and positive in-market testing to increase media investments behind our proven value messaging. The result was sales growth across all company-owned channels."

McLaughlin said his outlook for the year has improved.

"While still cautious about macro-trends for the balance of the year, we anticipate an improved outlook for 2010 based on our continuing momentum, and consequently are increasing our earnings guidance," he said. "We will continue to incrementally invest against our brand and customer experience, which represent key initiatives for the year."
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Looking forward, the company is increasing its previously announced guidance and now expects earnings per share in 2010 of between $0.45 and $0.50 per share. According to the company, the outlook assumes a continuation of recent sales trends, adjusted for normal seasonality, for the balance of 2010. The company expects to generate positive same-store growth throughout the year, although it anticipates that the rate of growth will slow as year-over-year comparisons become more difficult, specifically in the back half of the year.

Select Comfort closed out the first quarter of 2010 with 399 stores and expects to end fiscal 2010 with between 380 and 390 stores after the consolidation of planned store openings and closings. The company expects that 2010 capital expenditures will be approximately $15 million.

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