Select Comfort sales jump 26%
By Furniture Today Staff -- Furniture Today, April 21, 2003
Minneapolis — Bedding manufacturer and retailer Select Comfort continued on a strong growth track in the first quarter as sales jumped 25.6% and net income rose 27.3%.
The airbed specialist, which generates nearly 80% of sales from company-owned stores, said comparable-store sales rose 30% in the quarter, a figure that topped a 15% same-store sales gain in the first quarter of 2002.
"Each day we are building more interest and demand for our brand and product, positioning us well for the country's economic recovery ahead," said Bill McLaughlin, president and chief executive officer.
With revenues of $102 million for the quarter ended March 29, it marked the first time Select Comfort's quarterly sales had topped $100 million.
"We had a good January and February, and sales trends remained strong in March. We saw no real evidence of the 'CNN effect' that some other retailers have noted," Chief Financial Officer James Raabe said of the Iraq war's impact on the economy.
He said much of the top-line increase also fell to the bottom line. Net income was $4.1 million, compared with $3.2 million in last year's first quarter. Both figures are equal to 11 cents per share since the company has about four million more shares outstanding today than it did a year ago.
McLaughlin said the company opened two stores and remodeled 45 stores during the quarter. Twelve new stores and an undetermined number of remodelings are planned for the second quarter.
The company ended the first quarter with 322 stores.
McLaughlin said the company ramped up its advertising spending by more than 35% during the most recent quarter. He said the company's new national print and TV advertising featuring actress Lindsay Wagner has been particularly successful.
The company is projecting second-quarter sales at $90 million to $95 million, about 20% above last year's second quarter. Sales for 2003 should be up more than 20% to $410 million to $425 million.
| Select Comfort | |||
|---|---|---|---|
| Earnings per share are fully diluted. | |||
| Quarter ended 3/29 | 2003 | 2002 | Change |
| (a) Includes a $348,000 income tax benefit. (b) Based on average shares outstanding of 37.2 million in the 2003 quarter and 33.1 million in the 2002 quarter. | |||
| Sales | $101,958,000 | $81,195,000 | 25.6% |
| Operating income | 6,683,000 | 3,421,000 | 95.4% |
| Net income | 4,128,000 | (a)3,244,000 | 27.3% |
| Earnings per share (b) | 0.11 | 0.11 | 0.0% |
