Select Comfort Q2 Net Falls 14.6 Percent
July 17, 2014,
MINNEAPOLIS-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.