Select Comfort Q3 Net Skyrockets
Posted on November 5, 2015 by
MINNEAPOLIS-With sales—both on a total and same-store basis—rising by double digits, Select Comfort, parent of the Sleep Number stores, recorded third-quarter net income of $31.9 million, up 35.2 percent from the same year-ago quarter.
Net sales in the quarter, which ended on Oct. 3, rose 15.6 percent to $373.9 million, which included a gain of 11 percent in same-store sales. In a conference call yesterday to financial analysts, Shelly Ibach, Select Comfort’s president and CEO, said, “We are very pleased with the trajectory of our business and the steadiness of our results. We are delivering growth from both units and (average revenue per mattress unit) which for the first nine months were up 9 percent and 11 percent, respectively. And we continue to deliver record average sales per store, which is now at $2.56 million for the trailing 12 months, up 16 percent from the prior year, while also adding net new stores.”
Ibach said the company continues to enjoy year-over-year sales growth from its benefit-driven products, such as SleepIQ technology, FlexFit adjustable bases and FlexTop mattresses. “In addition, we entered a new market adjacency with SleepIQ Kids, and we are excited about the potential to connect with the entire family,” she said. “We expect this new category to build over time.”
Select Comfort’s financials have also blossomed thanks to its revamped advertising and marketing, which has delivered both increased store traffic and a broader base of customers. “Our new customer growth reflects younger, more affluent customers in addition to our historical core customer base,” Ibach said. An improved digital experience, consisting of a new and more responsive design along with easier mobile navigation, has also played a large role in Select Comfort’s improved numbers, she said.
The company has a “confident” outlook looking ahead to 2016, Ibach said. “We have a differentiated retail experience that has resulted in retail leading sales productivity with room to grow our footprint,” she said. “We have a loyal customer base that drivers our repeat and referral business which makes up more than a one-third of our sales. Innovative offerings like SleepIQ technology increases the frequency of our customer interaction and strengthens our ongoing customer relationships.”