Select Comfort Posts $6.2 Million Profit in 2Q

July 21, 2010  by in UnCategorized   

By Home Furnishings Business in Bedding on July 22, 2010 Specialty bedding retailer Select Comfort Corp. (NASDAQ: SCSS) reported net income of $6.2 million for the second quarter ended July 3, compared to a loss of $4 million in the same quarter last year.

Sales for the quarter were $139 million, a 15 percent increase compared to sales of $121 million during the second quarter of 2009.

"During the second quarter, our focus on key priorities delivered double-digit growth in same-store and total sales as well as improved profitability," said Bill McLaughlin, president and CEO of Select Comfort Corporation. "The progress we made during the past 18 months in our cost structure and operational execution is generating sustained profitability. In addition, these enhancements are proving particularly valuable as we lap stronger comparisons to a year ago and the macro-economic environment remains uncertain."

McLaughlin said the company plans to invest in "evolving our media messages, our digital and Web presence, and store locations, as well as further enhancing our customer experience."
 
The company's sales growth was driven by a 28 percent increase in same-store sales. Same-store growth was offset by the impact of the closure of 46 stores since the beginning of second quarter of 2009 and the termination of retail partner relationships in 2009. Sales-per-store increased to $1.2 million, approximately 25 percent higher than the prior-year period.

The company operates 395 stores and expects to end its fiscal year with between 380 and 390 stores. In addition to its stores, the company sells its Sleep Number beds online, through select bedding retailers and direct marketing.