Select Comfort More Than Doubles Net in First Quarter
MINNEAPOLIS-First-quarter net income for Select Comfort totaled $16.6 million, a strong 114 percent ahead of its first-quarter bottom line a year ago.
The mattress manufacturer-retailer benefited from a 22 percent increase in net sales, to $193.1 million in the first quarter, which ended on April 2. Sales were driven by comparable-sales growth of 26 percent in its company-owned stores. In addition, Select Comfort's gross margin grew by 170 basis points to 63.8 percent, thanks to a favorable mix of product sales, offset only partially by rising commodity costs.
Selling, marketing, general and administrative expenses rose 15 percent in the quarter but declined by 303 basis points as a percentage of sales, to 49.7 percent. Bill McLaughlin, Select Comfort's president and CEO, said the company's sales and marketing costs included a 30 percent increase in media investments.
McLaughlin said the healthy first quarter will allow Select Comfort to continue to push awareness among consumers for its Sleep Number mattress brand and to spend on enhancing the store experience. "We expect our efforts to generate strong earnings growth over the balance of the year, as well as provide for continued investment in growth opportunities," McLaughlin said.