Select Comfort Turns Loss into Profit in Second Quarter
MINNEAPOLIS-Select Comfort reported second-quarter net income of $6.2 million, rebounding from a $4 million loss in the second quarter of one year ago.
According to a company statement, the turnaround came about due to the progress the manufacturer/retailer has made in both boosting total and same-stores sales, and in controlling costs and increasing productivity.
Total sales rose 15 percent to $139 million, helped by a dramatic 28 percent increase in same-store sales. Gross margin gained 60 basis points to finish the quarter at 62.2 percent.
Total expenses edged up 4.3 percent on a dollar basis, with selling and marketing expenses up 3 percent and general and administrative expenses climbing 10.6 percent. However, all three of these numbers dropped as a percentage of total sales--with sales and marketing expenses down 530 basis points, general and administrative expenses down 40 basis points and total expenses declining 570 basis points.
"The progress we made during the past 18 months in our cost structure and operational execution is generating sustained profitability," said Bill McLaughlin, Select Comfort's president and chief executive officer. "In addition, these enhancements are proving particularly valuable as we lap stronger comparisons to a year ago and the macro-economic environment remains uncertain."