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Friday, October 23, 2009

Select Comfort Shares Soar on Strong Q3 Earnings

By Kathryn Glass

FOXBusiness

Minneapolis-based Select Comfort (SCSS) saw a big spike in share price on Friday after the company reported strong third-quarter earnings on Thursday after the market closed.

The company expects full-year earnings to range between 2 cents 8 cents per share, well ahead of analyst estimates for the full-year. Analysts were expecting the Select Comfort to report a loss of 2 cents per share for the year, according to Thomson Reuters.

In the third quarter, the maker of the Sleep Number bed saw profit of $6.9 million, or $0.15 per share, compared to net income of $1.0 million, or 2 cents per share, in the year-ago quarter.

Net sales fell 6% to $147.5 million, compared to revenue of $157.2 million in the third quarter of 2008. The company blamed its decrease in sales on 14% fewer stores than the previous year.

Analysts were expecting the retailer to report earnings of 7 cents per share on revenue of $134.4 million.
"Third-quarter results improved significantly as our focus on controlling costs, building our brand for improved sales, and preserving cash helped mitigate the impact of ongoing market volatility," said Bill McLaughlin, president and CEO, Select Comfort Corporation, in a statement. "While our business has begun to stabilize and we're beginning to experience its longer-term potential, economic and market conditions remain uncertain. Therefore, we are planning and managing conservatively, while prepared to capitalize on growth as we see opportunities."

Select Comfort’s stock soared in Friday’s session, up 16.87% or 97 cents to close at $6.76 per share.

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