NEWS RELEASE WRITTEN BY SELECT COMFORT AND PUBLISHED, UNEDITED, BY BEDTIMES
Select Comfort Announces First Quarter 2017 Results
MINNEAPOLIS–(BUSINESS WIRE)–Select Comfort Corporation (NASDAQ: SCSS) today reported first quarter 2017 results for the period ended April 1, 2017.
-Reported 12% net sales growth to a record $394 million and first quarter EPS of $0.56
-Generated record operating free cash flow of $74 million and repurchased $50 million of the company’s common stock
-Increases full-year 2017 earnings outlook to a range of $1.25 to $1.50 per diluted share
Minneapolis-based Select Comfort’s Sleep Number 360 smart bed was an honoree in the Best of Innovation category at the Consumer Electronics Show in January in Las Vegas.
“Consumers are responding enthusiastically to our brand and differentiated products. Our investments over the past few years have made us a stronger competitor and this is evident in our first quarter results,” said Shelly Ibach, President and CEO of Select Comfort. “In the second quarter, we will begin the phased introduction of the revolutionary Sleep Number 360 smart beds. This innovation will set a new standard for what people should expect from their bed.”
First Quarter Overview
- Net sales increased 12% to $394 million, including a 3% comparable sales increase
- Earnings per diluted share increased 107% to $0.56, compared with $0.27 in the prior year’s quarter
- Operating income increased 80% to $36 million, or 9.1% of net sales (up 350 basis points versus prior year), with our gross margin rate increasing 340 basis points to 62.6% of net sales
- Cash provided by operations was $87 million, up from $64 million in the prior year
- Return on invested capital (ROIC) was 13.9% for the trailing-twelve month period, well above our cost of capital
Financial Outlook
The company has increased its full-year 2017 earnings per diluted share outlook to $1.25 to $1.50, compared with the previous outlook of $1.20 to $1.40 per share. The outlook continues to include an estimated $0.15 to $0.22 EPS impact from incremental costs related to the launch of the Sleep Number 360™ smart bed line and the redesign of our logistics network. The outlook assumes high single-digit sales growth, including 4 to 5 percentage points from net new store openings and low single-digit comp store growth. The company anticipates 2017 capital expenditures to be approximately $55 million.
About Select Comfort Corporation
Thirty years ago, Sleep Number transformed the mattress industry with the idea that ‘one size does not fit all’ when it comes to sleep. Today, the company is the leader in sleep innovation and ranked “Highest in Customer Satisfaction with Mattresses” by J.D. Power in 2015 and 2016. As the pioneer in biometric sleep tracking and adjustability, Sleep Number is proving the connection between quality sleep and health and wellbeing. Dedicated to individualizing sleep experiences, the company’s 3,800 employees are improving lives with innovative sleep solutions. To find better quality sleep visit one of the more than 540 Sleep Number® stores located in 49 states or SleepNumber.com.
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