WASHINGTON (dpa-AFX) - Mattress maker Select Comfort Corp. (SCSS), Thursday said its first-quarter profit declined despite a 7 percent growth in revenues, as margins decreased and marketing costs rose during a period that was marred by harsh winter.
Minneapolis, Minnesota-based Select Comfort's first-quarter profit dropped to $17.0 million or $0.31 per share from $23.5 million or $0.42 per share last year.
On average, nine analysts polled by Thomson Reuters expected earnings of $0.32 per share for the first quarter. Analysts' estimates typically exclude one-time items.
Sales for the first quarter increased 7 percent to $276.4 million from $258.2 million a year ago, including same-store sales growth of 2 percent. Analysts expected revenues of $274.27 million for the first quarter.
Gross margins, or gross profit as a percentage of sales dropped to 62.0 percent from 63.3 percent last year. Sales and marketing expenses increased to $125.0 million from $109.8 million last year.
Commenting on the results, Chief Executive Shelly Ibach said, 'We are pleased with our results, which were in line with internal expectations. We continue to make progress and are on track with our three important growth strategies: product innovation, marketing effectiveness and local market development.'
The company maintained its outlook for the full year 2014, and continues to expect earnings to approximate full-year 2013 adjusted earnings of $1.07 per share, and total revenue growth of mid- to high-single-digit.
Analysts currently estimate earnings of $1.11 per share on revenue growth of 7.30 percent.
SCSS closed Thursday's trading at $17.75, down $0.11 or 0.62%, on the Nasdaq. The stock, however gained $0.35 or 1.97% in after-hours trade.
Copyright RTT News/dpa-AFX
© 2014 AFX News
