Select Comfort Q2 Net Falls 14.6 Percent

Select ComfortMINNEAPOLIS-Rising expenses trumped a significant sales gain to send Select Comfort's second-quarter net income down 14.6 percent, to $8.5 million.

Sales, marketing, general and administrative expenses jumped 12.5 percent in dollars in the quarter, which ended on June 28, although they did drop 33 basis points as a percentage of sales. Gross margin fell 270 basis points to 60.7 percent.

Net sales finished the quarter at $234.8 million, up 13.2 percent and including a 7 percent gain in same-store sales at Select Comfort's company-controlled stores. Shelly Ibach, president and CEO, said Select Comfort customers responded well to its new product introductions, in particular to its SleepIQ technology--in which sensors inside the Sleep Number bed measure average heart rate, breathing rate and body movement to evaluate how a person is sleeping.

Looking ahead to the second half of the fiscal year, Select Comfort said it plans to add 20 to 30 net new stores, bringing its store count to from 460 to 470 by the end of the year.

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

  • 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

    HFN's DIGITAL EDITION

    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.


    ALSO IN THIS ISSUE:

    • 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.