Select Comfort Turns Loss Into Profit in First Quarter
MINNEAPOLIS-Select Comfort posted net income of $7.8 million in the first quarter, compared to a loss of $2.7 million in the first quarter of last year.
The manufacturer/retailer did so based on a combination of rising sales and expense controls. Net sales were $158 million in the first quarter, up 13 percent and including a 29 percent increase in same-store sales. In addition, Select Comfort's gross margin of 62.1 percent was 350 basis points above the same figure in last year's first quarter.
Sales and marketing expenses rose 4.1 percent, but were down 380 basis points as a percentage of net sales. General and administrative expenses were cut by 1.5 percent on a dollar basis, and were down 130 basis points as a percentage of net sales.
Bill McLaughlin, Select Comfort's president and chief executive officer, said the company's first quarter benefited from the dramatic growth in same-store sales, the strong operating margin and an improving consumer environment. The company said the outlook for the rest of 2010 includes continued positive same-store sales growth and further increases in its bottom line.