Airbed manufacturer and retailer Select Comfort Corp., maker of the Sleep Number Bed, reported net income for the first quarter of fiscal 2014 was $17 million, a 28% decrease from the first quarter of fiscal 2013. Net sales, however, for the first fiscal quarter increased 7% to $276 million, as compared with $258 million in the prior-year quarter. The net sales increase includes comparable sales growth of 2%, the Minneapolis-based company said.
| BRIEFLY | |
| Select Comfort’s first quarter | |
| Net sales | $276 million |
| Net income | $17 million |
| Operating income | $25.8 million |
Operating income decreased 27% to $25.8 million, as compared with operating income of $35.2 million in the first quarter of 2013.
Adjusted earnings per diluted share were $0.31, as compared with $0.41 in the prior-year quarter (excluding CEO transition benefits).
“We are pleased with our results, which were in line with internal expectations,” said Shelly Ibach, Select Comfort president and chief executive officer. “We continue to make progress and are on track with our three important growth strategies: product innovation, marketing effectiveness and local market development. During the quarter, we introduced the most significant product innovations and marketing advancements in our company’s history. Customer reaction has been strong and we remain cautiously optimistic in an ongoing challenging consumer environment.”
Select Comfort expects full-year 2014 earnings per diluted share will be comparable with full-year 2013 adjusted earnings per diluted share of $1.07. The financial outlook for 2014 assumes mid to high single-digit revenue growth and the net addition of 20 to 30 new stores in 2014, the company said.
Cash flow from operating activities was $39 million in the first quarter, compared with $45 million in the prior-year’s first quarter. Capital expenditures increased to $16.7 million as compared with $14.3 million in 2013. During the first quarter, the company repurchased 0.6 million shares of its common stock for $10 million. As of the end of the quarter, cash, cash equivalents and marketable-debt securities totaled $143 million, and the company had no borrowings under its revolving credit facility.
