Select Comfort Sales Up On Store Growth

April 25, 2007  by in UnCategorized   

By Home Furnishings Business in Mattresses on April 2007 Minneapolis-based Select Comfort, which operates more than 440 stores, reported that its net sales increased 2 percent to $216.5 million in its first quarter.

Net income dipped to $10.7 million from $11.7 million in the first quarter of last year, and first quarter earnings of 21 cents per diluted share were unchanged from the first quarter of 2006. Sales growth from new Select Comfort stores and other retail partners offset an 11 percent decrease in same-store sales in the first quarter. Select Comfort’s store count reached 447 during the quarter versus 402 last year.

“The year started much like we expected, with solid execution and continued operating improvement offsetting challenged revenue growth,” said Bill McLaughlin, chairman and CEO. “In keeping with our long-term focus, we protected margins and preserved brand integrity despite a highly competitive pricing and promotional environment.”

McLaughlin said he anticipates “the challenging macro-economic pressures will begin to stabilize,” and the company said it expects second-quarter earnings will be below year-ago levels due, in part, to investments in long-term initiatives and costs associated with new mattress flammability standards.