* Q1 adj EPS $0.45 vs est $0.40
* Q1 rev $262.4 mln vs est $233.7 mln
* Sees 2012 adj EPS $1.38-$1.46 vs est $1.38
* Shares down about 3 percent in aftermarket trade
April 18 Select Comfort Corp posted
quarterly results that beat Wall Street expectations, but a fall
in gross margins on promotions sent the mattress maker's shares
down in aftermaket trading.
The company, known for its Sleep Number line of
adjustable-firmness mattresses, said first-quarter gross margin
fell to 62.6 percent, from 63.8 percent last year.
Select Comfort, which has been increasing its store count
and ramping up promotions to gain share from rivals such as
Tempur-Pedic International Inc and Sealy Corp,
said sales and marketing costs were up nearly a third to $106.2
million. Media spending rose 48 percent to $35 million.
Last month, rival Sealy Corp posted a first-quarter profit
First-quarter net income rose to $22.4 million, or 39 cents
per share, up from $16.6 million, or 30 cents per share, last
Excluding items, the company earned 45 cents per share for
the first quarter, which came in higher than analysts'
expectations of 40 cents per share, according to Thomson Reuters
Minneapolis, Minnesota-based Select Comfort said sales rose
36 percent to $262.4 million on a 34 percent jump in comparable
sales of company controlled stores. This also beat analysts'
view of $233.7 million.
The company, which sells mattresses with prices ranging from
$699 to upwards of $4,000, has now beaten market expectations
for the thirteenth time in a row.
Select Comfort's shares, which had closed at $35.24 on
Wednesday on the Nasdaq, fell 3 percent in aftermarket trade.