Home / Knowledge / News / Textiles / Select Comfort continues to demonstrate strong sales growth
Select Comfort continues to demonstrate strong sales growth
21
Oct '10
Select Comfort Corporation reported third-quarter results for the period ended Oct. 2, 2010. Net sales for the quarter totaled $160 million, an increase of 9 percent on same-store growth of 16 percent, compared to $147 million in net sales in the third quarter of 2009. The company reported net income of $10.5 million, or $0.19 per diluted share in the third quarter of 2010, compared to net income of $6.9 million, or $0.15 per diluted share, during the same quarter last year.

"We continue to demonstrate strong sales growth and operating margin expansion, despite an uncertain environment. And we are particularly pleased with our same-store growth as we lapped more difficult comparisons from the third quarter a year ago," said Bill McLaughlin, president and CEO, Select Comfort Corporation. "The consistency of our results in these market conditions, as well as our strong cash position, reinforces our confidence in our ability to leverage our unique advantages, invest opportunistically and grow market share."

McLaughlin continued, "As we look forward to the fourth quarter and 2011, we will continue to advance our growth strategies by investing incrementally in media, stores and product development with the goal of sustaining above-market sales growth into next year."

Third-quarter Summary
During the third quarter, net sales increased by 9 percent as compared to a year ago and operating margin improved to 10.5 percent. Year-to-date, net sales increased by 12 percent and operating margin improved to 9.0 percent.

Sales growth was driven by a 16 percent increase in same-store sales. Same-store growth was offset by the closure of 28 stores since the beginning of the third quarter of 2009 and the termination of retail partner relationships during the third quarter of 2009. Sales-per-store increased to $1.25 million, 27 percent higher than the prior-year twelve-month period.

Gross profit margins were 62.5 percent of net sales, 90 basis points lower than the 63.4 percent gross profit rate experienced in the third quarter of 2009. This decline reflects higher product and promotional costs.

Sales and marketing costs were 42.6 percent of net sales in the third quarter compared to 44.8 percent in the third quarter of 2009, a 220 basis-point improvement due to the leverage of higher sales over a smaller store base. Sales and marketing costs increased year-over-year by $2.3 million to $68 million in 2010. Media investments in the third quarter totaled $17.4 million, 12 percent higher than the prior-year period.

General and administrative expenses equaled $14.3 million in the third quarter, or 8.9 percent of net sales. This compares to $11.8 million, or 8.0 percent of net sales, in the same period last year. The rise in expenses reflects increased incentive compensation as well as costs to support growth initiatives.

Cash flows from operating activities were $68 million for the first nine months of 2010 compared to $53 million in the year-ago period (which included a $26 million tax refund). Capital expenditures totaled $3.5 million year-to-date in 2010. As of the end of the quarter, cash and cash equivalents totaled $82 million and the company had no borrowings under its revolving credit agreement.


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search