| BRIEFLY | |
| Select Comfort full year | |
| Net sales | $960 million |
| Operating income | $88 million |
| Earnings per share | $1.08 |
| Store count | 440 |
| Select Comfort fourth quarter | |
| Net sales | $231 million |
| Operating income | $9.7 million |
| Earnings per share | $0.12 |
Select Comfort Corp., manufacturer and retailer of the Sleep Number Bed, reports net sales for its fiscal 2013 fourth quarter ending Dec. 28 increased 5% to $231 million, as compared with $221 million in the same quarter of 2012. Company-controlled sales were flat year-over-year.
Operating income was $9.7 million, compared with $19.4 million in the fourth quarter of 2012.
During the quarter, the company opened 28 new stores and closed 11.
Using generally accepted accounting principals, earnings per share were $0.12 in the fourth quarter.
During full-year fiscal 2013, Select Comfort net sales increased 3% to $960 million, as compared with $935 million for full-year 2012. Company-controlled comparable sales declined 4% year-over-year.
Earnings per share (GAAP) were $1.08, compared with $1.37 per diluted share in 2012. Adjusted earnings per diluted share—excluding chief executive officer transition benefit/costs—were $1.07, compared with $1.43 for the prior year.
In fiscal 2013, Select Comfort opened 71 new stores and closed 41, ending the year with 440 stores, a 7% increase versus year-end 2012.
“While we made important progress on strengthening our strategic differentiators and delivered five percent year-over-year sales growth, our financial performance in the fourth quarter did not meet our expectations,” said Shelly Ibach, Select Comfort president and chief executive officer. “As we look to 2014, we are cautiously optimistic about the combined impact of what we believe are fundamental product innovations and the most tested, new advertising campaign in our history.”
Operating income for full-year 2013 was $88 million as compared with $101 million in 2012. Capital expenditures increased to $77 million as compared with $52 million in 2012, driven by increased investment in stores and information systems, the company said.
During the fourth quarter, the company returned $10 million to shareholders through the repurchase of 0.5 million shares of its common stock, bringing full-year share repurchases to $40 million, or 1.8 million shares. As of the end of the quarter, cash, cash equivalents and marketable debt securities totaled $145 million and the company had no borrowings under its revolving credit facility.
Select Comfort expects full-year 2014 earnings per diluted share to approximate its full-year 2013 adjusted earnings per diluted share of $1.07. This outlook assumes mid to high single-digit total revenue growth and the addition of 20 to 30 new stores during the year. Capital expenditures of $70 to $80 million are anticipated, including investments in new, relocated and remodeled stores, as well as information technology.
