Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Mattress maker Select Comfort ended the year with slightly higher total revenue and another drop-off in e-commerce sales. For Q4 and 2009, web sales decreased 6.4% and 21.8%, respectively.
Mattress maker Select Comfort Inc. ended the year with slightly higher total revenue and another drop off in e-commerce sales.
For the year ended Jan. 2, Select Comfort reported:
- E-commerce sales decreased 21.8% to $29.0 million from $37.1 million.
- Total revenue decreased 10.6% to $544.2 million from $608.5 million in 2008.
- E-commerce accounted for 5.3% of total sales compared with 6.1% in the prior year.
- Net income was $35.6 million compared with a net loss of $70.1 million in 2008.
"Our fourth quarter and full-year performance reflects strong execution against a set of initiatives that focused on controlling costs, building our brand for improved sales and preserving cash,” says CEO Bill McLaughlin. “The result is significantly improved profitability, with the company experiencing two consecutive quarters of same-store sales growth.”
For the fourth quarter, Select Comfort, No. 247 in the Internet Retailer Top 500 Guide (a PDF version of the company’s financial and operating profile can be ordered by clicking on its name), reported:
- E-commerce sales decreased 6.4% to $7.3 million from $7.8 million.
- Total revenue grew 4.2% to $136.5 million from $131.0 million in the fourth quarter of 2008.
- E-commerce accounted for 5.3% of total sales compared with 6.0% in the prior year.
- Net income was $35.3 million compared with a net loss of $57.4 million in the fourth quarter of 2008.
“The company’s consistent cash generation in 2009, along with efforts to restructure our balance sheet, has allowed us to eliminate our debt,” says Select Comfort chief financial officer Jim Raabe. “This return to a positive cash position provides the flexibility to balance cash preservation with prospects for investments in growth.”