Select Comfort Deflates Expectations

June 13, 2007  by in UnCategorized   

By Home Furnishings Business in Bedding on June 2007 Fast-growing Select Comfort, Minneapolis, announced Wednesday that it expects second-quarter sales to be 5 percent lower than a year ago, and the company reduced its guidance for 2007, saying marketing is not performing to expecations.

In a pre-recorded message, CFO Jim Raabe said full-year sales are expected to increase 4 percent to 7 percent to $840 million to $860 million. The company had previously said it expected annual sales to top $900 million. Second-quarter results will be released July 25.

“We are not at all satisfied with our performance, particularly our marketing, and we are working aggressively on programs to both stimulate demand and enhance margin,” Raabe said.

Last month, the company announced that Chief Marketing Officer J. Douglas Collier had resigned. In 2006, the company’s net sales grew 17 percent to $806 million. Raabe said the company is adjusting its marketing to emphasize new products, including one featuring “cooling” technology.

Select Comfort describes itself as the nation’s leading bed retailer. Its adjustable firmness “Sleep Number” mattresses are sold in more than 440 company owned stores and several bedding retailers.