Select Comfort Reports $10.5M Income for 3Q

October 20, 2010  by in UnCategorized   

By Home Furnishings Business in Bedding on October 21, 2010 Specialty bedding retailer Select Comfort Corp. (NASDAQ: SCSS) reported third quarter net income of $10.5 million for the period ended Oct. 2, compared to net income of $6.9 million for the same quarter last year.

Net sales for the quarter were $160 million, a 9 percent increase compared to $147 million in sales posted in the prior-year quarter. Same-store sales grew 16 percent in the quarter.

"We continue to demonstrate strong sales growth and operating margin expansion, despite an uncertain environment," said Bill McLaughlin, president and CEO. "And we are particularly pleased with our same-store growth as we lapped more difficult comparisons from the third quarter a year ago. The consistency of our results in these market conditions, as well as our strong cash position, reinforces our confidence in our ability to leverage our unique advantages, invest opportunistically and grow market share."

McLaughlin said moving forward the company will continue with its growth strategies of investing in advertising, stores and product development.

Based on third-quarter performance, the company has increased its previous guidance and now expects to report full-year 2010 earnings per share of between $0.52 and $0.55. The company's fourth-quarter outlook anticipates year-over-year profit improvement and positive same-store growth, although at a slower pace, as year-over-year comparisons now are more difficult and the company's outlook for the macro-environment anticipates slow growth and continued volatility.

The company concluded the third quarter with 392 stores and expects to end fiscal 2010 with a comparable number of stores after netting planned store openings and closings. The company anticipates 2010 capital expenditures of about $8 million.

Read the entire earnings release on Select Comfort's Web site.