Select Comfort Reports Cuts of Full-Year Sales Outlook

October 24, 2007  by in UnCategorized   

By Home Furnishings Business in Bedding on October 2007 Minneapolis-based Select Comfort cut its full-year outlook Wednesday while reporting that sales increased 3 percent in the company’s third quarter, but net income declined nearly 15 percent.

Net sales for the company that operates 470 stores totaled $213.1 million and net income was $11.9 million, which was down from $13.9 million. Earnings per diluted share increased by a penny to 26 cents from the same period last year.

“While we have not yet regained the revenue strength we are capable of, we have made progress and did deliver year-over-year earnings per share growth,” said Bill McLaughlin, chairman and CEO. “Operationally, we continue to perform well, with profitability and strong cash flow allowing us to continue to invest in sales growth and cost savings improvements to enhance performance in 2008.”

Sales benefited from 46 new company-owned stores opened during the past 12 months and the company’s e-commerce business jumped 30 percent. Same-store sales declined 3 percent.

The company lowered its full-year outlook for 2007 “in anticipation of a slower recovery in its retail sales.” The company now expects sales for the year to reach $820 million to $830 million—down from its previous forecast of $840 to $860 million.

In a separate announcement Wednesday, Select Comfort said it has struck a deal with a partner in Australia to begin manufacturing in the Sydney area to serve 32 stores there.