Bedding retailer Select Comfort Corp.’s sales declines continue, but income is up.
For the third fiscal quarter ended Oct. 3:
- Web sales were $6.9 million, down by 16.9% from $8.3 million in the prior year quarter.
- Total sales were $147.5 million, a 6.2% decline from $157.2 million in the same quarter last year.
- The web accounted for 4.7% of sales versus 5.3% in Q3 of 2008.
- Comparable-store sales were up 9%.
- Net income was up by 590% year over year to $6.9 million from net income of $1.0 million.
“Third-quarter results improved significantly as our focus on controlling costs, building our brand for improved sales and preserving cash helped mitigate the impact of ongoing market volatility,” says Bill McLaughlin, president and CEO of Select Comfort, No. 247 in the Internet Retailer Top 500 Guide. “While our business has begun to stabilize and we’re beginning to experience its longer-term potential, economic and market conditions remain uncertain. Therefore, we are planning and managing conservatively, while prepared to capitalize on growth as we see opportunities.”
The company closed 14 stores during the third quarter and 65 stores year to date, with plans to close an additional six stores by the end of 2009. Select Comfort owns about 400 stores in the U.S.
For the first nine months of fiscal 2009:
- Web sales were $20.8 million, down by 28.5% versus $29.1 million through the first nine months of fiscal 2008.
- Total sales were $407.7 million, a 14.6% decrease compared with $477.5 million in the prior year period.
- Web sales accounted for 5.1% of sales against 6.1% through three quarters of 2008.
- Net income was $200,000, compared with a net loss of $12.7 million for the first nine months of 2008.