Select Comfort Posts $21 Million Loss in 4Q

February 12, 2016  by in Financial Reports, Industry   

Net sales for the quarter dropped 33 percent from $322.2 million last year to $214.7 million.

For the fiscal year, the bedding retailer reported net income of $50.5 million compared to net income of nearly $68 million in the prior year. Net sales for the 12-month period increased 5 percent to $1.21 billion compared to $1.16 billion last year.

The company said implementation of a enterprise resources planning system negatively impacted its fourth quarter results.

"The transition from our 20-year-old legacy systems to a fully integrated ERP platform has been more challenging with far greater customer and financial impacts than we anticipated,” said Shelly Ibach, president and CEO of Select Comfort. “Many of our customers endured delays and delivery reschedules as we ramped up the new system. These results are not acceptable to us. We have made major progress resolving technical and operational issues. Plants have increased production levels ahead of current demand and operational and customer service levels have significantly improved. We expect to leverage this critical investment for improved profitability in the back-half of 2016 as planned. Our competitive advantages and strategic direction remain on track to achieve our commitment of earnings per share of $2.75 by 2019.”