Select Comfort Deflates Quarterly Projections
Select Comfort Said Sales at Its 470 Stores Could Fall Below 2006 Levels
December 2007
Minneapolis-based Select Comfort, the nation’s largest bedding retailer with 470 stores, announced Wednesday that sales in its fourth quarter are falling short of expectations and will likely fall below 2006 levels. Without issuing specific figures, the maker of Sleep Number Beds said sales slumped after the Thanksgiving “Black Friday” period, and company officials said price increases, cost-cutting and a new marketing push are being employed to restore the company’s momentum.
“Our focus for 2008 is to stabilize profits and maximize cash generation while selectively investing in opportunities to restore same-store growth and the company’s competitive advantages,” CFO Jim Raabe said during a taped message for investors.
Raabe said during the quarter that ends in three weeks, customers have responded to special offers and other promotions, but traffic has fallen below expectations during less promotional periods. During the fourth quarter of 2006, the company generated sales of $198 million. In October, Select Comfort cut full-year sales projections to between $820 million and $830 million. In 2006, Select Comfort’s full-year sales totaled $806 million.
“Our focus for 2008 is to stabilize profits and maximize cash generation while selectively investing in opportunities to restore same-store growth and the company’s competitive advantages,” CFO Jim Raabe said during a taped message for investors.
Raabe said during the quarter that ends in three weeks, customers have responded to special offers and other promotions, but traffic has fallen below expectations during less promotional periods. During the fourth quarter of 2006, the company generated sales of $198 million. In October, Select Comfort cut full-year sales projections to between $820 million and $830 million. In 2006, Select Comfort’s full-year sales totaled $806 million.
Companies Mentioned:
 |
