Select Comfort announces slower fourth quarter sales

04 Dec '06

3 min read

Select Comfort Corporation is the nation's leading bed retailer and creator of the Sleep Number bed, announced that net sales during the first eight weeks of the fourth quarter ending with the Thanksgiving weekend increased six percent and same-store sales declined nine percent compared to the prior year period.

Total unit volume increased eight percent compared to the same period a year ago. Year-over-year comparisons during the holiday weekend were especially difficult due to a Nov. 29, 2005 price increase, which accelerated sales a year ago.

The company currently expects fourth quarter net sales growth and same-store sales growth to be below the low end of its long-term growth targets. Accordingly, the company is decreasing its full year earnings guidance to between $0.80 and $0.87 per diluted share.

"This quarter's sales have been disappointing, as we've noted a closer correlation in our business with housing industry trends. Our sales programs and promotional offers have been consistent with prior years, and we are protecting product margins," said Bill McLaughlin, Select Comfort Chairman and Chief Executive Officer.

McLaughlin continued, "We have a demonstrated history of looking internally for answers, not pointing to external factors. We have moved quickly to revamp our December sales and marketing programs to drive traffic, increase referrals from our existing bed owners and enhance consumer interest through financing and other purchase incentives."

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