Select Comfort Net Expands 52 Percent in Q3
MINNEAPOLIS-Net income for Select Comfort rose 52 percent in the third quarter ended Oct. 2, 2010, totaling $10.5 million and marking the seventh consecutive quarter of bottom-line improvement.
The mattress manufacturer/retailer posted this increase based on a 9 percent gain in net sales, which reached $160.1 million and which included a 16 percent increase in same-store sales. Although Select Comfort's gross margin fell 90 basis points to 62.5 percent, it was able to hold the line on operating costs. Total operating expenses rose 2 percent on a dollar basis but dropped 330 basis points as a percentage of sales, to 52 percent.
In a conference call discussing the company's third quarter with stock analysts, Bill McLaughlin, Select Comfort's president and chief executive officer, said the company achieved its numbers "despite a challenging environment." McLaughlin noted that Select Comfort has moved beyond its focus last year in stabilizing the business, and into a period in which it is emphasizing the value in its product line. This includes an even greater focus on the company's Sleep Number brand, which is now featured prominently on Select Comfort store marquees to link with its Sleep Number advertising.