Select Comfort reports robust first quarter

First-quarter snapshot
Net sales $350 million
Net income $29 million
Operating income $44 million
Earnings per share $0.54 million

Airbed manufacturer and retailer Select Comfort Corp., owner of the Sleep Number brand, reported net income for the first quarter of fiscal 2015 was $29 million, a 71% increase from the first quarter of fiscal 2014. Earnings per share grew 74% to an all-time quarterly record of $0.54.

Net sales for the first fiscal quarter rose 27% to $350 million—a new record for the Minneapolis-based company—compared with $276 million in the prior-year period. The net sales increase includes comparable sales growth of 22%.

Operating income increased 69% to $44 million as compared with operating income of $26 million in the first quarter of 2014.

“Continued strong consumer response to the combination of our advertising, benefit-driven products and differentiated retail experience delivered performance ahead of expectations,” said Shelly Ibach, Select Comfort president and chief executive officer. “Our investments in innovation, technology and distribution are growing the business in a sustainable, profitable manner and creating value for our shareholders.”

Cash flow from operating activities was $49 million for the first quarter of 2015, compared with $39 million for the same period last year. Capital expenditures increased to $18 million, up from $16.7 million in 2014. During the first quarter, the company repurchased 0.6 million shares of its common stock at a cost of $20 million.

Select Comfort expects full-year 2015 earnings per diluted share to be $1.35, compared with the previous outlook of $1.30 per share. The outlook assumes high single-digit total net sales growth for the balance of the year and a 6% increase in store count in 2015.

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