18216 Thu, 02/11/2010 - 2:07pm
MINNEAPOLIS–Select Comfort reported net income of $35.3 million in the fourth quarter, reversing a fourth-quarter net loss of $57.4 million last year.
The mattress manufacturer-retailer achieved this result through a gain in net sales and gross margin, plus stringent cost cutting. Net sales rose 4 percent in the quarter to $136.5 million, which included a whopping 23 percent increase in same-store sales, offset by the closure of 72 stores since the beginning of last year.
Select Comfort’s gross margin jumped 700 basis points to 62.9 percent as well. The company also managed to slash 12 percent off sales and marketing costs. It also cut 17 percent off its media costs and 21 percent off general and administrative expenses.
For the full year, Select Comfort reported net income of $35.6 million as compared with a net loss for the previous year of $70.2 million. Net sales finished at $544.2 million, down 11 percent from the prior year.