From Home Furnishing Business
Select Comfort Q3 Profits Slip, but Sales Rise 9.4%
Mattress producer and retailer Select Comfort (NASDAQ: SCSS) said third-quarter sales jumped 9.4% to $402.6 million, but net income slipped about 1% due largely to the impact of hurricanes Harvey and Irma.
The company, maker of the Sleep Number bed, didn’t specify how much the hurricanes hurt the bottom line, but reported net income of $25.6 million in the quarter ended Sept. 30, down from $25.7 million in the same quarter last year.
On a per-share basis, net income was 62 cents per share in the most recent quarter, surpassing last year’s third quarter total of 56 cents per share due to the company’s aggressive share repurchase program in the past year. The average number of shares outstanding stood at 41.5 million as of Sept. 30, down from 46.4 million shares at the end of last year’s third quarter.
The company said sales were driven by strong demand for its new Sleep Number 360 smart bed line, noting that comparable-store sales from company-owned retail stores rose 5%.
“We are excited with how the consumer continues to respond to our innovations focused on quality sleep and wellness,” said Shelly Ibach, president and CEO.
The company ended the quarter with 553 company-owned stores, a net gain of four locations from the beginning of the quarter. The average sales per square foot rose to $909 from $895 a year earlier.
For the nine months ended Sept. 30, sales were up 8.4% to $1.08 billion, and net income jumped 22.8% to $49.3 million or $1.16 per share.
Select Comfort also tweaked its full-year earnings estimate to $1.30 to $1.45 per share. That compares with a June estimate of $1.25 to $1.50 per share. Both estimates include expenses from the Sleep Number 360 product launch of about 18 cents per share.
In addition, the company announced it will officially change its corporate name to Sleep Number Corp. on Nov. 1. Its NASDAQ ticker symbol will change to SNBR.