Select Comfort Q4 Profit Rises - Quick Facts

(RTTNews) - Select Comfort Corp. (SCSS) reported fourth-quarter net income of $18.95 million or $0.35 per share, compared to $6.43 million or $0.12 per share, prior year. Excluding the benefit of $0.06 related to the additional week in the quarter and $0.04 related to a favorable legal settlement, earnings per share grew 108%.

On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.23 for the quarter. Analysts' estimates typically exclude special items.

Net sales increased to $322.22 million from $230.85 million last year. Analysts expected revenue of $282.78 million for the quarter. Net sales increased 40% in the quarter, with 22% comparable sales growth and 10 percentage points (ppt.) of growth from the extra week in the fourth quarter, the company reported.

The company expects full-year 2015 earnings per share of $1.30 on a GAAP basis. The outlook includes $11 million (pre-tax), or $0.13 per share, of estimated launch costs related to the company's ERP (Enterprise Resource Planning) system planned for implementation in the fourth quarter of 2015. The outlook implies earnings per share growth of 20% excluding the impacts of the extra week in 2014 and the 2015 ERP launch costs. The outlook assumes high-single-digit total net sales growth and a 6% increase in store count in 2015. Analysts expect the company to report fiscal 2015 earnings per share of $1.39.

The company has also established a long-range target of $2.75 earnings per share for 2019, with returns on invested capital expected in the mid-teens.