News Flash

Select Comfort announces slower fourth quarter sales

04 Dec '06

3 min read

"We have historically outpaced mattress industry growth rates and we remain confident in our long-term opportunity. Although we don't expect an immediate reversal in current trends, we do believe that we will be able to deliver our targeted long-term growth rates in 2007," McLaughlin continued.

"We are working on specific initiatives that we believe will contribute to long-term growth and business advantages in 2007 and beyond."

"These include work with our new creative partner, McKinney, on first quarter advertising programs, accelerating product innovation in beds and accessories, continued quality and cost initiatives, and implementation of a fully integrated SAP ERP solution that we expect to launch by early 2008."

"Although these initiatives will require at least a quarter or two to take effect, we remain committed to long-term sales growth targets of between 15 and 20 percent and earnings growth of between 20 and 25 percent," McLaughlin said.

Underscoring the company's confidence in its long-term prospects, management remains committed to continuing its share repurchase program. Through Friday, November 24, Select Comfort has invested $15.6 million in the fourth quarter to repurchase an additional 748,000 shares of its common stock.

On a year-to-date basis, the company has invested $65.1 million to repurchase a total of 3.1 million shares. Of the $150 million board authorization announced in May 2006, $103 million remains available for additional share repurchases.

Fourth Quarter Business Update
This press release is in lieu of the company's quarterly business update that had been scheduled for Wednesday, December 13, 2006.

Select Comfort Corporation

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