Select Comfort posted earnings of 31 cents a share for the first quarter, missing analysts' expectations of 32 cents a share by 1 cent. Revenue grew 7% from the year-ago quarter to $276.41 million. Analysts surveyed by Thomson Reuters expected revenue of $$274.27 million.
Looking forward to full-year 2014 the company expects earnings close to 2013's $1/07 a share. Select Comfort expects mid- to high-single-digit revenue growth, and 20 to 30 new stores during the year.
"We are pleased with our results, which were in line with internal expectations," president and CEO Shelly Ibach said in a press release. "We continue to make progress and are on track with our three important growth strategies: product innovation, marketing effectiveness and local market development. During the quarter, we introduced the most significant product innovations and marketing advancements in our company's history. Customer reaction has been strong and we remain cautiously optimistic in an ongoing challenging consumer environment."
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TheStreet Ratings team rates SELECT COMFORT CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SELECT COMFORT CORP (SCSS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."