From Home Furnishing Business
Select Comfort Q3 Sales up 23%
Operating income totaled $35 million, up 15 percent compared with $31 million in the prior year; earnings per diluted share were $0.44, a 22 percent increase.
Comparable sales increased 16 percent, and new stores added 8 points of growth for the quarter. Sales benefited from 13 percent growth in average revenue per unit and 10 percent growth in units.
“Third-quarter results reflect the strength of our consumer-focused innovation strategy and the progress we are making with our growth initiatives,” said Shelly Ibach, president and CEO of Select Comfort, Minneapolis. “Connectivity through technology, like SleepIQ, is playing an increasingly important role in the consumer lifestyle brand we are building.”
During the third quarter, the company repurchased 0.5 million shares of its common stock at a total cost of $10 million. Year-to-date share repurchases totaled $30 million.
At quarter end, the company had deferred $5 million of revenue and $3 million of expenses associated with its SleepIQ product, which will be recognized over the product’s estimated five-year life.
Select Comfort increased its outlook for full-year 2014 earnings per diluted share to $1.12, compared with its prior outlook of $1.07. The company expects to end the year with 463 stores, an increase of 23 net stores from the prior year-end.
Click here for the complete Select Comfort third-quarter release.