Home / Knowledge / News / Textiles / Net sales zoom 24% at Select Comfort in Q3
Net sales zoom 24% at Select Comfort in Q3
19
Oct '12
Select Comfort Corporation reported third-quarter results for the period ended Sept. 29, 2012. Net sales for the quarter increased 24 percent to a third-quarter record of $247 million, compared to $200 million in the third quarter of 2011. Results were driven by company-controlled comparable sales growth of 21 percent. The company reported record third-quarter earnings per diluted share of $0.46, a 48 percent increase versus $0.31 per diluted share in the third quarter of 2011.

“Customers continue to enthusiastically respond to the Sleep Number brand experience, including our proprietary products and exclusive store experience, which drove record third-quarter sales,” said Shelly Ibach, president and CEO, Select Comfort. “And the strength of our business model resulted in record operating margin as well as record earnings per share.”

“In the fourth quarter, we’ll accelerate investments in our consumer-focused growth strategies to build brand awareness and advance product innovation while also developing markets with more convenient locations and enhanced store experiences,” continued Ibach. “We remain committed to our goal of delivering greater than 20 percent annual earnings-per-share growth while exceeding $1.5 billion in sales and 15 percent operating margin by 2015.”

Third-quarter Summary

In the third quarter, net sales increased by 24 percent as compared to the prior-year period. The increase was driven by company-controlled comparable sales growth of 21 percent, with average retail sales-per-comparable-store during the past 12 months reaching a record $2.1 million, a 31 percent increase over the prior-year period. The sales increase also was driven by 20 net new stores opened during the past 12 months, including 13 net new stores opened during the third quarter. There were 394 stores open as of Sept. 29, 2012.

Operating income for the third quarter was $40.2 million, and operating margin during the quarter was 16.3 percent of net sales, a 300 basis-point improvement from 13.3 percent in 2011. Operating income and operating margin were both quarterly records for the company. The 300 basis-point operating margin growth was primarily driven by a 210 basis-point increase in gross-profit margin and a 90 basis-point improvement in the sales and marketing expense rate.

Gross-profit margin in the third quarter of 2012 was 65.1 percent of net sales, an increase of 210 basis points versus 63.0 percent in the prior-year period. The year-over-year increase was primarily driven by pricing and mix associated with new product innovation. In addition, the prior-year period was impacted by a $1.6 million increase to customer-service reserves.

Sales and marketing costs were $101.7 million in the third quarter, or 41.2 percent of net sales. This compares to $83.9 million, or 42.1 percent of net sales in the prior-year period, reflecting continued leverage from the company’s sales growth. Media spending during the quarter was $32 million, a 33 percent increase versus the prior-year period.

Must ReadView All

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search