Select Comfort's ad push awakens growth

  • Article by: SUSAN FEYDER , Star Tribune
  • Updated: April 18, 2012 - 8:28 PM

The firm beat analysts' estimates and said its same-store sales rose 34 percent.


Select Comfort spent more on advertising its Sleep Number bed last quarter. Sales and profit each grew at least 35 percent.

Photo: , Select Comfort

CameraStar Tribune photo galleries

Cameraview larger

Select Comfort Corp.'s efforts to make more consumers aware of its Sleep Number brand appear to have paid off in the first quarter for the company, which Wednesday reported a 36 percent gain in sales.

The strong results were fueled in part by a 48 percent increase in advertising spending by the Plymouth-based company during the period ended March 31.

Select's healthy sales also reflect an ongoing recovery by the bedding industry, which took a beating during the housing downturn.

The International Sleep Products Association recently reported that bedding unit sales were up 2 percent in 2011, while the dollar value of shipments increased 10 percent. Traditional innerspring mattress unit sales rose less than 1 percent, while unit sales of specialty mattresses like Select's adjustable firmness beds increased almost 30 percent.

Select's sales for the quarter totaled $262 million. Same-store sales rose 34 percent.

Earnings excluding a non-cash charge were $39.9 million, or 45 cents a share, versus 30 cents a share for the same period last year. The results topped analysts' estimates by a nickel.

In a statement, Shelly Ibach, chief operating officer and incoming CEO, said: "As we look ahead, we are confident in our ability to continue generating earnings-per-share growth of at least 20 percent per year for the foreseeable future."

The company said it expects earnings per share of $1.32 and $1.40 this year, up from $1.07 last year.

Select reported its results after the stock market closed. The shares fell about 3 percent to $34.10 in after-hours trading after closing at $35.24, up about 1 percent for the day.

Susan Feyder • 612-673-1723

  • get related content delivered to your inbox

  • manage my email subscriptions





Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters