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Select Comfort reports Q4 and full-year 2007 results
07 Feb '08
3 min read
Fourth Quarter Summary:
Fourth quarter sales benefited from the 36 net new company-owned stores opened during the past 12 months. Broader product distribution partially offset a 13 percent decline in same-store sales, much of which occurred in December. Fourth quarter e-commerce revenues grew 4 percent and wholesale sales were up 6 percent, as compared to fourth quarter of 2006.
Fourth quarter gross profit margin of 58.5 percent declined 2.4 percentage points from 60.9 percent in the prior-year period. The decline reflects a downward shift in sales mix and higher commodity costs.
Fourth quarter operating margin of 1.5 percent declined 6.6 percentage points from 8.1 percent in the fourth quarter of 2006 due to lower sales, reductions in gross margins, higher fixed costs associated with the increased number of stores, and a 10 percent increase in media spending, which totaled $26.0 million in the quarter.
Cash flows from operating activities for 2007 totaled $46.6 million, compared to $59.4 million in 2006. Capital expenditures totaled $46.1 million for the year, compared to $31.1 million in 2006.
As of Dec. 29, 2007, cash and cash equivalents totaled $7.3 million and outstanding debt totaled $37.9 million. Current cash and debt balances reflect higher levels of accounts receivable and inventories, and the timing of payments on certain liabilities resulting in lower levels of current liabilities.
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Fourth quarter sales benefited from the 36 net new company-owned stores opened during the past 12 months. Broader product distribution partially offset a 13 percent decline in same-store sales, much of which occurred in December. Fourth quarter e-commerce revenues grew 4 percent and wholesale sales were up 6 percent, as compared to fourth quarter of 2006.
Fourth quarter gross profit margin of 58.5 percent declined 2.4 percentage points from 60.9 percent in the prior-year period. The decline reflects a downward shift in sales mix and higher commodity costs.
Fourth quarter operating margin of 1.5 percent declined 6.6 percentage points from 8.1 percent in the fourth quarter of 2006 due to lower sales, reductions in gross margins, higher fixed costs associated with the increased number of stores, and a 10 percent increase in media spending, which totaled $26.0 million in the quarter.
Cash flows from operating activities for 2007 totaled $46.6 million, compared to $59.4 million in 2006. Capital expenditures totaled $46.1 million for the year, compared to $31.1 million in 2006.
As of Dec. 29, 2007, cash and cash equivalents totaled $7.3 million and outstanding debt totaled $37.9 million. Current cash and debt balances reflect higher levels of accounts receivable and inventories, and the timing of payments on certain liabilities resulting in lower levels of current liabilities.
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