Gruss E.
Select Comfort Announces Second Quarter Sales Increase of 32 Percent, Updates Second Quarter Earnings Guidance
MINNEAPOLIS, Jul 3, 2003 (BUSINESS WIRE) -- Select Comfort Corporation
(Nasdaq: SCSS), the nation's leading bed retailer and creator of the SLEEP
NUMBER(R) bed , announced today that net sales for the second quarter ended June
28, 2003 were $102.0 million, a 32 percent increase from $77.3 million for the
second quarter of 2002. Same-store sales for the second quarter of fiscal 2003
increased 34 percent on top of a same-store sale increase of 21 percent in the
second quarter of 2002.
"We continued to build momentum for our brand, product and stores in the second
quarter, and remain confident in Select Comfort's sustainable growth potential,"
said Bill McLaughlin, president and chief executive officer. "In this
challenging economy, we are fortunate to be in the position of investing in
growth with new advertising, store openings, store remodels and new product
development."
The Company now estimates its second quarter earnings per share will exceed the
current consensus estimate of $0.08 per fully diluted share. It is revising
earnings guidance upward to $0.11 to $0.12 per fully diluted share for the
second quarter of 2003. This compares to pro forma, diluted net income per share
in the second quarter of 2002 of $0.05. The Company will provide third quarter,
fourth quarter and full-year guidance when it reports second quarter results on
July 15, 2003.
The company's earnings under Generally Accepted Accounting Principles (GAAP) for
second quarter 2003 are being compared to 2002 earnings on a pro forma,
after-tax basis to improve comparability between the periods. GAAP did not allow
the company to reduce its earnings for income tax expense in 2002, while 2003
results reflect a reduction in earnings for income taxes. In the second quarter
of 2002, pro forma, diluted net income per share was $0.05 and reported earnings
per share under GAAP were $0.08. A full reconciliation of the company's pro
forma, after-tax earnings for 2002 to treatment under GAAP can be found at the
end of this release.
Select Comfort will hold a conference call to discuss its second quarter results
on July 15, 2003, at 10:00 a.m. Central Time. A simultaneous webcast of the call
will be available in the Investor Relations section of www.selectcomfort.com. A
digital replay of the conference call will be accessible beginning at
approximately 1:00 p.m. Central Time on July 15, 2003, through 5:00 p.m. Central
Time on July 29, 2003. To access the replay, please call 800-642-1687 from
anywhere in the U. S. International callers may dial 706-645-9291. The passcode
for the replay is 1596403. An archived replay of the conference call may also be
accessed after approximately 12:30 p.m. Central Time on July 15, 2003 at
www.selectcomfort.com.
Founded in 1987, Select Comfort Corporation is the nation's leading bed retailer
(1), holding 26 U.S. issued or pending patents for its personalized sleep
products. The company designs, manufactures and markets a line of
adjustable-firmness mattresses featuring air-chamber technology, branded the
Sleep Number(R) bed, as well as foundations and sleep accessories. Select
Comfort's products are sold through its 332 retail stores located nationwide,
including 13 leased departments in Bed Bath & Beyond stores; through selected
bedding retailers; through its national direct marketing operations; and on the
Internet at www.selectcomfort.com.
Statements used in this press release that relate to future plans, events,
financial results or performance are forward-looking statements that are subject
to certain risks and uncertainties including, among others, such factors as
general and industry economic trends, uncertainties arising from war and other
global events, consumer confidence, effectiveness of our advertising and
promotional efforts, consumer acceptance of our products and sleep technology,
industry competition, warranty expenses, our dependence on significant
suppliers, and the vulnerability of any suppliers to recessionary pressures,
labor negotiations, liquidity concerns or other factors as well as the risk
factors listed from time to time in the company's filings with the SEC,
including the company's Annual Report on Form 10-K and other periodic reports
filed with the SEC.
The company has no obligation to publicly update or revise any of the
forward-looking statements that may be in this news release.
(1) Top 25 Bedding Retailers, Furniture Today, May 26, 2003
