Home / Knowledge / News / Textiles / 15% increase in net sales at Select Comfort

15% increase in net sales at Select Comfort

22
Jul '10
Select Comfort Corporation reported second quarter results for the period ended July 3, 2010. Net sales for the quarter totaled $139 million, an increase of 15 percent on same-store growth of 28 percent, compared to $121 million in the second quarter of 2009.

The company reported net income of $6.2 million, or $0.11 per diluted share in the second quarter of 2010, compared to a net loss of $4 million, or $0.09 per diluted share, in the second quarter of 2009.

"During the second quarter, our focus on key priorities delivered double-digit growth in same-store and total sales as well as improved profitability," said Bill McLaughlin, president and CEO, Select Comfort Corporation. "The progress we made during the past 18 months in our cost structure and operational execution is generating sustained profitability. In addition, these enhancements are proving particularly valuable as we lap stronger comparisons to a year ago and the macro-economic environment remains uncertain."

McLaughlin added, "In the second half of 2010, we will continue to execute against priorities designed to drive sales and profitability. We also will selectively invest in and test programs to advance longer-term growth including evolving our media messages, our digital and web presence, and store locations, as well as further enhancing our customer experience."

Second Quarter Summary
During the second quarter, net sales increased by 15 percent as compared to a year ago and operating margin improved to 7.2 percent. Year-to-date, net sales increased by 14 percent and operating margin improved to 8.1 percent.

Sales growth was driven by a 28 percent increase in same-store sales. Same-store growth was offset by the impact of the closure of 46 stores since the beginning of second quarter of 2009 and the termination of retail partner relationships in 2009. Sales-per-store increased to $1.2 million, approximately 25 percent higher than the prior-year period.

Gross profit margins were 62.2 percent of net sales, 60 basis points higher than the 61.6 percent gross profit rate in the second quarter of 2009, reflecting improved manufacturing productivity.

Sales and marketing costs were 45.3 percent of net sales in the second quarter compared to 50.6 percent in the second quarter of 2009, a 530 basis-point improvement primarily due to the leverage of higher sales over a smaller store base. Sales and marketing costs increased year-over-year by $1.9 million to $63 million in 2010. Media investments in the second quarter totaled $16.1 million, 16 percent higher than the prior-year period.

General and administrative (G&A) expenses equaled $12.9 million in the second quarter, or 9.3 percent of net sales. This compares to $11.7 million, or 9.7 percent of net sales in the same period last year.

Cash flows from operating activities were $26 million for the first six months of 2010 compared to $36 million (which included a $23 million tax refund) in the year-ago period. Capital expenditures totaled $1.7 million, approximately equal to the prior year. As of the end of the quarter, cash and cash equivalents totaled $40 million and the company had no borrowings under its revolving credit agreement.


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 1st Apr 2020

Indian ministry asks over 10 manufacturers to produce PPE

The Indian health ministry has asked over 10 domestic manufacturers...

Pic: Shutterstock

Apparel/Garments | On 1st Apr 2020

Five more brands not to cancel export orders to Bangladesh

Five more global fashion brands-three European and two North...

Pic: Venturelli Luca / Shutterstock.com

Retail | On 1st Apr 2020

H&M to take goods already manufactured, assures suppliers

Swedish retail giant H&M recently assured its garment suppliers of...

Interviews View All

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Textile industry, Head honchos

Textile industry
Head honchos

Relaxation in FDI norms will support growth of retail sector

Textile Industry, Head honchos

Textile Industry
Head honchos

There's a lot more potential in women than what we are witnessing today

Jason Remnant,

Jason Remnant

<div>Xaar plc develops digital inkjet technology; it designs and...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Mario Castro,

Mario Castro

Fibraltex is an integral factory dedicated to the production of denim...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

Leave your Comments


March 2020

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


Advanced Search