3Q Profit Jumps 52 Percent for Select Comfort; Sales Set Record

MINNEAPOLIS-Fueled by record sales, third-quarter net income for Select Comfort climbed 52.1 percent to $26.2 million.

Net sales for the quarter, which ended on Sept. 29, rose 23.7 percent to $246.8 million, a new record for the third quarter, and including a same-store sales gain of 21 percent for Select Comfort's own stores. Shelly Ibach, the company's president and CEO, attributed the strong sales to shoppers' positive response to the Sleep Number brand experience, including its proprietary products and store experience.

Select Comfort also recorded a healthy 210 basis-point pickup in gross margin, which finished the quarter at 65.1 percent. Selling, general and administrative expenses were up 20.7 percent in dollars but fell 110 basis points as a percentage of sales, to 48.1 percent.

In the fourth quarter, Ibach said the Select Comfort strategy will be to increase its investments in building brand awareness and in product innovation, along with developing new markets. "We remain committed to our goal of delivering greater than 20 percent annual earnings-per-share growth while exceeding $1.5 billion in sales and 15 percent operating margin by 2015," she said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.