Select Comfort beat analysts earnings expectations for the second quarter despite profits that plunged 87 percent due in part to ERP computer installation expenses and lackluster consumer demand across the industry.
Sales for the Plymouth-based maker of high-end, adjustable-air beds missed expectations. They rose just 1 percent to $276.8 million during the quarter ended July 2. Results were helped by a host of new store openings.
Profits were $1.4 million, or 3 cents a share, down considerably from $11 million (or 21 cents per share) reported for the second quarter 2015. On average, Wall Street analysts had expected earnings of 1 cents and sales of $283 million.
In a statement, officials said the quarter’s sales and earnings were impacted by the residual effects of the company’s costly new ERP computer system.
Officials reiterated their full-year 2016 forecast earnings, saying profits should reach $1.25 to $1.45 a share. That compares with 97 cents in 2015. The outlook assumes sales growth will be in the low double digits. Officials also expect a 10 percent jump in the number of new store openings and $65 million in capital expenditures. Last year, Select Comfort spent $86 million in capital expenditures.