Select Comfort 2Q Sales Up 22%

July 25, 2006  by in UnCategorized   

By Home Furnishings Business in Bedding on July 2006 Bedding manufacturer and retailer Select Comfort Corp. reported a 22 percent jump in second-quarter 2006 sales, compared to the same prior-year period, to $188.6 million.

Net income comparing this year’s second quarter to 2005’s was up 37 percent to $10.7 million, while earnings per share rose 46 percent to $0.19. Earnings per share data reflects the company’s 3-for-2 stock split that took effect on June 8.

Year-to-date sales rose 23 percent to $401.4 million over the first six months of 2005, while net income was 36 percent ahead of last year at $22.5 million.

Net income and earnings per share in 2005 did not include stock option expense. If second-quarter 2005 results had included the effects of stock option expense, then earnings would have been $0.12 per diluted share in the prior year, and second quarter 2006 earnings of $0.19 per diluted share would represent earnings growth of 58 percent. On a year-to-date basis, 2005 earnings would have been $0.25 per diluted share, and 2006 earnings of $0.40 per diluted share would represent earnings growth of 60 percent.

“The company’s second-quarter performance is particularly gratifying in this challenging consumer and retail environment and once again demonstrates the breadth and strength of our multi-channel distribution,” said Bill McLaughlin, Select Comfort chairman and chief executive officer. “Our distribution expansion provides convenient channel alternatives for consumers and enables us to maintain sales growth rates well in excess of industry averages. We successfully leveraged productivity advances and controlled costs, which led to significant margin expansion this quarter. We believe we will continue to achieve margin gains over the balance of the year while continuing to invest in long-term growth initiatives intended to sustain the company’s superior growth rates.”