Select Comfort Corporation (NASDAQ: SCSS) today reported fourth-quarter and fiscal 2011 results for the period ended Dec. 31, 2011. Net sales for the quarter increased 27 percent to $189 million, compared to $149 million in the fourth quarter of 2010, driven by company-controlled comparable sales growth of 31 percent. The company reported fourth-quarter earnings per diluted share of $0.27, a 108 percent increase versus $0.13 per diluted share in the fourth quarter of 2010. Fourth-quarter 2011 results included a $1.9 million, or $0.03 per diluted share, non-recurring net decrease to income-tax expense related to the favorable resolution of prior-years’ tax matters.
Net sales for the full-year 2011 increased 23 percent to $743 million, compared to $606 million in 2010, driven by company-controlled comparable sales growth of 26 percent. The company reported earnings per diluted share of $1.07 in 2011, an 88 percent increase versus $0.57 per diluted share in 2010. Full-year 2011 results included a $1.5 million, or $0.03 per diluted share, non-recurring net decrease to income-tax expense related to the favorable resolution of prior-years’ tax matters.
“Our outstanding financial results in 2011 mark a year of significant progress for our company as we refined our top-line growth formula and achieved record bottom-line leverage and profitability,” said Bill McLaughlin, president and CEO, Select Comfort Corporation. “Building on a strong 2010, we continued to attain top-tier comparable sales increases through our integrated and customer-focused approach to marketing, distribution and product innovation.”
McLaughlin added, “Our team enters 2012 with confidence in our proven growth drivers as we continue to broaden our target consumer, increase brand awareness and develop our under-penetrated major markets. We remain focused on delivering sustained growth in market share and earnings for our shareholders, while also maintaining flexibility to effectively manage through continued market uncertainty.”
Fourth-quarter and Full-year Summary
In the fourth quarter, net sales increased by 27 percent as compared to the prior-year period. The increase in sales was driven by company-controlled comparable sales growth of 31 percent, with average retail sales-per-store during the past 12 months reaching a record $1.7 million, a 33 percent improvement over the prior-year period.
Gross-profit margin in the fourth quarter of 2011 was 62.9 percent of net sales, compared with 63.0 percent in the prior-year period. On a full-year basis, gross-profit margin improved 80 basis points from 62.5 percent in 2010 to 63.3 percent in 2011, driven by favorable product mix, pricing actions and manufacturing efficiencies.