Select Comfort Reports Sharp Sales Decline, Profit

October 22, 2008  by in UnCategorized   

By Home Furnishings Business in Bedding on October 2008 Minneapolis-based Select Comfort announced Wednesday that sales in its third quarter declined 26 percent to $157.2 million as the company returned to profitability with income of $1 million, which is down from $11.9 million in the same period last year.

The maker of “Sleep Number Beds,” Select Comfort operates 470 company owned stores nationwide. “Following a difficult first half and continued declining revenue, we achieved a significant goal during the third quarter by returning to profitability,” said CEO Bill McLaughlin. “During the quarter, we took aggressive action to reduce costs, improve operating efficiencies, and preserve cash, while selectively investing in those initiatives that will help improve business results.”He said the company expects difficult conditions to persist through 2009. “We have been proactive and aggressive in reducing costs and protecting margins. Given this challenging business environment, we are focused on improving our cost structure while implementing programs designed to stabilize sales and market share.”

The company said it will shut five stores during the fourth quarter, bringing the total number of closings for the year to 26. It expects to cut another 20 in the first quarter of 2009.