Select Comfort Boosts Third-Quarter Net 64 Percent

MINNEAPOLIS--Strong sales and improved margins propelled Select Comfort to a 64 percent gain in net income in the third quarter, to $17.2 million.

Net sales for the quarter, which ended on Oct. 1, increased 25 percent to $199.6 million, with sales showing strength across the country and including a staggering 29 percent increase in same-store sales at the company's retail outlets. Gross margin picked up 50 basis points in the quarter, to 63 percent, thanks in part to manufacturing efficiencies and pricing actions.

Selling, marketing, general and administrative expenses rose 19 percent on a dollar basis, due in part to a 38 percent jump in media expenses related  increased advertising. As a percent of sales, however, these expenses fell 200 basis points to 49.2 percent.

As positive a quarter as it was, Bill McLaughlin, Select Comfort's president and CEO, said the company is still early in its growth curve due to its low brand awareness. "Our plan calls for continued share and earnings growth, fueled by sustained focus on executing our proven, consumer-driven product, marketing and distribution initiatives," McLaughlin 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.

Videos

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money