Select Comfort Profit Increases 82% in Q2, 2011

Buoyed by a 20% same-store sales increase, specialty bedding resource Select Comfort recorded double-digit sales and earnings increases in the quarter ended July 2.

The company, which makes the Sleep Number airbed and sells its products largely through company-owned stores, said total sales rose 16.2% to $161.5 million.

Net income, meanwhile, shot up 82% to $11.3 million, or 20 cents per share.

“We’re pleased that focused execution against our strategic priorities is continuing to result in strong operational and financial performance, as demonstrated in our second quarter results,” said Bill McLaughlin, president and CEO. “Specifically, we sustained double-digit comparable sales growth and strong margins, which allowed us to report record-setting second quarter operating income.”

The company ended the quarter with 375 stores and said it would have about 380 by the end of the year.

For the six months ended July 2, sales totaled $354.5 million, an increase of 19.4% from $296.9 million in the same period a year ago.

Six-month net income was $27.9 million or 50 cents per share. That’s roughly double the totals for the same period last year, when the company made $14 million or 25 cents per share.

Based on its strong second quarter, Select Comfort boosted its earnings estimates for the year. The company now says it expects to have earnings of 90 cents to 96 cents per share. That’s up from an April forecast of 85 cents to 93 cents per share.

The company said same-store sales should increase in the mid- to high teens for the year.

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