Select Comfort expects growth to beat targets
By Furniture Today Staff -- Furniture Today, October 3, 2005
Minneapolis — Airbed maker and retailer Select Comfort said sales trends are as predicted and the company expects to exceed its long-term growth targets in the current third quarter.
In a conference call with analysts, Chief Financial Officer Jim Raabe said, "Our long-term targets are for sales growth of 15% to 20% and earnings growth of 20% to 25%. We are currently on track to exceed those long-term targets, both in the (current) quarter and year."
Select Comfort reaffirmed its earnings outlook for the year of $1 to $1.08 per share.
Raabe said the target for same-store sales growth was 7% to 12%, and Select Comfort believes it will be at the upper end of that range for the third quarter. Labor Day store sales set a record, he said.
The company plans to release third-quarter results on Oct. 25.
During the current quarter, Select Comfort has continued its aggressive stock repurchases. So far this quarter, the company has bought back 1.3 million common shares, or nearly 4% of its outstanding stock. The board of directors has increased its repurchase authorization and Select Comfort plans to continue its buyback as the market permits.
