Select Comfort Net Balloons 50.3 Percent in Second Quarter
MINNEAPOLIS-A healthy sales boost and increased margins fueled Select Comfort to a powerful 50.3 percent gain in net income for its second quarter, to $17 million.
The company's net sales in the quarter, which totaled a record $205.2 million, represented a 27.1 percent increase over last year's second quarter. Select Comfort's average retail sales per comparable store exceeded $2 million for the first time in the company's history.
Gross margin rose 60 basis points to 64.1 percent, and operating margin gained 170 basis points to finish the quarter at a record 12.6 percent. Selling, general and administrative expenses were up 24.9 percent in dollars, but shed 90 basis points as a percentage of sales to 50.9 percent.
Shelly Ibach, Select Comfort's president and CEO, said the company "executed well against our integrated growth formula designed to increase brand awareness, grow exclusive distribution and advance proprietary product offerings that provide meaningful benefits for our customers." Ibach said the company is on its way toward reaching its goals of exceeding $1.5 billion in annual net revenue and 15 percent operating margin by 2015.