I will now turn the call over to Shelly for her comments.
Shelly R. Ibach
Thank you, Mark. Good afternoon, and thank you for joining our earnings call today. We're very pleased with our second quarter financial performance. Earnings per share increased 50% from a year ago to a second quarter record of $0.30. Sales increased 27% from a year ago to a second quarter record of $205 million. These results demonstrate the strength of our unique business model and integrated growth formula.
Our vertically-integrated model as a manufacturer and retailer provides multiple points of leverage to maximize operating margin, which was also a second quarter record of 12.6%. Strong cash flow allows us to self fund growth, and we remain committed to achieving the appropriate balance between seizing investment opportunities and managing risks.Our integrated growth formula supports our long-term strategy, focused on delivering an unparalleled customer experience. We are driving traffic and conversion through our brand advertising, exclusive distribution, relationship-based selling experience and proprietary benefit-driven suite of products and services.Again, in the second quarter, we experienced strong units in ASP growth. This validates our differentiated strategy that goes beyond selling mattresses to offering consumers a complete individualized value-added sleep experience. Therefore, we are confident in our ability to drive performance in the short and long term.As we have previously discussed, our strategy has delivered top and bottom line growth regardless of the economic environment or changes in the competitive landscape.In the second quarter, we increased media investment as planned by 37% over prior year. At the same time, we continued to shift media buys to more effectively reach our expanded target consumer and develop local markets. As expected, these actions resulted in the following: improved brand and store awareness; increased traffic, driving a 13% unit increase in our company-controlled channels; and advancement of our local market development strategy, including the launch of our seventh aggressive growth market at the end of the quarter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV